Fevertree FY revenue boosted by overseas performance
Posh tonics maker Fevertree posted a rise in full-year revenues on Wednesday as a solid performance overseas helped to offset a weaker UK market, but warned that the Covid-19 pandemic will have a "material" impact on FY20 trading.
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22,467.12
17:10 19/04/24
FEVERTREE DRINKS
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16:45 19/04/24
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In the year to the end of December 2019, revenue rose 10% to £260.5m as sales in the US, Europe, and the rest of the world pushed up 33%, 16% and 31.7%, respectively. This helped to offset a 1.1% decline in the UK. Pre-tax profit edged down 4.1% to £72.5m.
Earnings per share declined 6% to 50.26p and the company proposed a final dividend of 9.88p a share, taking the full year payment to 15.08p.
Fevertree said the UK market was "more challenging", reflecting a number of headwinds faced by the wider mixer category.
"The category lapped some exceptional comparators from 2018, driven by the summer heatwave, major sporting events and royal weddings. On top of this the UK experienced unseasonably poor weather over the summer months in 2019 which was followed by weaker than expected consumer confidence towards the end of the year," it said.
"This all had a notable impact not only on the mixer category but the wider grocery channel, with our major retail customers seeing a deceleration in growth in the second half."
The company said its On-Trade channel, which sells to bars and restaurants and makes up 45% of group sales, continues to be "challenged" across many of its regions, with many customers "severely impacted" by the crisis.
Still, sales in the Off-Trade business have been strong in many of its markets as people stocked up ahead of the lockdown and also in recent weeks, with at home consumption remaining "robust".
Co-founder and chief executive officer Tim Warrillow said: "While we will not be unaffected by the current situation, especially in the On-Trade, Fevertree is well positioned to manage our way through this situation. We are a global business with revenue diversified across regions, channels and customers.
"Financially the group is very secure. We are debt free, with a strong cash position. The group's unique asset light, outsourced business model means we have a low fixed cost base, a small, dedicated team and the flexibility to manage the current challenges. The wider long-term trend towards premium spirits and premium long mixed drinks continues and we are confident the group will be well placed once the current period of disruption and uncertainty ends."
At 1000 BST, the shares were up 11% at 1,513.50p.