20th Nov 2019 09:49
(Alliance News) - Fevertree Drinks PLC on Wednesday reported continued growth across all four operating regions and said it expects double-digit revenue increase in 2019.
The stock was trading 8.9% higher in London in morning trade at 2,024.00 pence a share.
Looking ahead, the supplier of premium carbonated mixers - especially tonic water - said it remains on track to deliver growth across all its regions with the US performing ahead of expectations in the second half.
Fevertree said it now expects its revenue for 2019 of between GBP266 million and GBP268 million, representing year-on-year growth of 12% to 13%, with margin expectations unchanged, given the short-term headwinds in UK Off-Trade business.
Geographically, Fevertree said sales in the US have accelerate in the second half of 2019, reflecting both the significant distribution expansion across the company's key Off-Trade accounts and a further distribution gains in On-Trade channel.
Off-Trade means sales through supermarkets and other shops, while On-Trade mean sales via restaurants, bars and pubs.
As a result, Fevertree said it now expects to deliver revenue growth of 34% in the US, which is ahead of its previous expectations.
"Fevertree's progress in the US is particularly encouraging and the signing of a US bottling partner is a further step in building our operations in this exciting market," said Chief Executive Tim Warrillow.
Turning to the UK, Fevertree said it has seen a wider slowdown in consumer spending and now expects to deliver just 2% revenue growth. In the UK Off-Trade, the company said its performance has been behind expectations in the second half as it continued to lap very tough comparators in July and August.
In Europe, Fevertree said it has seen an acceleration of revenue growth in the second half and expects to deliver growth for the full year of 19%.
Meanwhile, in Rest of World, the premium mixed drinks trend continues to spread, the company noted, with the company's market leadership position growing alongside it. As a result, Fevertree said it expects to deliver revenue growth of 35% for the full year.
By Evelina Grecenko; [email protected]
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