26th Mar 2019 08:34
LONDON (Alliance News) - Britons enjoyed many a gin and tonic during a hot summer full of public events, ensuring another strong year for Fevertree Drinks PLC in 2018.
The AIM-listed tonic water maker on Tuesday reported progress across all of its regions and products. Revenue climbed 40% in 2018 to GBP237.4 million, lifing pretax profit by 34% to GBP75.6 million.
This represents another year of strong growth for the firm, after similar progress over the past few years since listing in London in late 2014.
One slight negative was a slip in gross profit margin to 51.8% from 53.5%, due to the UK sugar levy.
Fevertree is to return 10.28 pence per share as a final dividend, taking the total to 2018 to 14.50p, after 10.65p in 2017.
"2018 was a significant year for Fever-Tree. In the UK, we strengthened our position as the leading mixer brand in the Off Trade. In the US, we successfully established our own operations and the business made real progress in deepening and widening its presence in multiple European regions," said co-Founder & Chief Executive Tim Warrillow.
"As the world's leading premium mixer brand with a strengthening global distribution network we are well set to drive the international opportunity as the move towards the premium long mixed drink continues to gather momentum around the world."
In the UK, revenue surged 53% to GBP134.2 million, with performance in the UK "exceptional" due to prolonged hot weather as well as events such as the royal wedding and the football World Cup, while this positive performance continued over Christmas.
Fevertree, which now has direct control of US operations, registered sales growth of 24% there excluding currency movements to GBP35.8 million, with performance solid despite disruption due to the transition.
On Continental Europe, revenue was up 23% excluding currency to GBP55.5 million, with progress made across all products. In the Rest of the World, revenue climbed 48% to GBP12.0 million.
"The brand's visibility and awareness amongst consumers continues to increase with the key territories of Australia and Canada as well as South Africa all performing strongly with a growing presence in both the On and Off-Trade and across our flavours," said Fevertree.
Looking ahead, Warrillow said trading so far in 2019 has met expectations and the firm "remains" excited about the future.
Shares were 1.7% lower in early trade Tuesday at 2,500.00 pence each.
Related Shares:
Fevertree