23rd Mar 2015 10:28
LONDON (Alliance News) - Fevertree Drinks PLC Monday said it swung to a pretax profit in 2014 as growing demand for its carbonated mixers for alcoholic spirits drove up its revenue by nearly half, and it predicted another positive year in 2015.
The company, which makes 12 different flavour mixers which it sells to hotels, restaurants and bars as well as direct through supermarkets and off-licenses, reported a pretax profit of GBP2.5 million for 2014, compared with a GBP1.1 million loss in 2013, as revenue rose to GBP34.7 million from GBP23.3 million. It ended the year with net cash of GBP3.3 million
It booked an exceptional cost of GBP1.1 million related to its initial public offering last November, but it had booked GBP3.2 million of exceptional costs in 2013 related to a corporate acquisition that saw the PLC buy the Limited company trading entity.
Fevertree said sales rose 60% in the UK, its largest market, by 59% in the US, its second-largest market, and by 35% in the rest of Europe.
It sells four variants of tonic water, two variants of ginger beer, three variants of lemonade, and one variant each of ginger ale, soda water and cola, and is taking advantage of the so-called "premiumisation" of the drinks market whereby drinks makers are developing more "premium" variants of drinks with different tastes and marketing styles.
"We believe that as the gin market further premiumises in more countries, demand for premium tonic water will increase. Similarly, as the market for other spirits (for example, vodka, rum and whisky blends) continues to premiumise, there is expected to be increased demand for the wider range of premium mixers that the group produces," it said.
"We are encouraged by our start to the current financial year and the board remains positive about the outlook for 2015. With continued implementation of our strategy across our diverse range of products, territories, channels and customers we look forward to the future with confidence," it added.
It will pay a final dividend of 0.30 pence a share.
Fevertree shares were down 2.8% at 210.00 pence Monday morning. It is still trading at a significant premium to its IPO price of 134p.
By Steve McGrath; [email protected]; @stevemcgrath1
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