15th Sep 2021 10:38
(Alliance News) - Fevertree Drinks PLC on Wednesday maintained its full year guidance as revenue rose in the first half, despite profit remaining below its pre-pandemic level.
Shares in Fevertree were trading up 1.3% at 2,166.0 pence each in London on Wednesday morning
In the six months ended June 30, pretax profit increased 17% to GBP25.3 million from GBP21.7 million a year ago. In comparison. Before the pandemic, however, the company reported interim pretax profit of GBP34.8 million in 2019 and GBP32.7 million in 2018.
Fevertree's profit rose despite logistics disruption and cost pressures hitting margins. Its gross margin slipped to 44.1% from 46.8% a year earlier.
Nevertheless, revenue climbed to GBP141.8 million, up 36% from GBP104.2 million a year earlier and 21% above the GBP117.3 million reported two years ago.
Sales increased across all regions, but grew fastest in the Europe and Rest of World segments. European sales totalled GBP41.3 million in the first half, the company said, doubling year-on-year from GBP20.5 million. Meanwhile, the company's smaller Rest of World segment saw a 73% jump in sales to GBP14.0 million from GBP8.0 million last year.
Despite being the company's largest market UK sales were the slowest to grow in the first half, increasingly by only 4.1% to GBP50.3 million from GBP48.3 million.
At the half-year point, the company lifted its interim payout by 2.0% to 5.52 pence from 5.41p.
Chief Executive Tim Warrillow said: "I am pleased to report an excellent sales performance for the first half of the year. Our ambition and confidence in the global opportunity continues to grow and we have been encouraged by the initial re-opening of the On-Trade, the ongoing strength of the Off-Trade with sales exceeding pre-Covid levels across all our regions, as well as the response to our new product launches, all of which is a testament to our increasing brand strength, growing presence, marketing investments, and relationships across the industry."
With sales increasing, the company reiterated its full-year guidance of between GBP295 million and GBP304 million with earnings before interest, tax, depreciation and amortisation of around 20%.
By Scarlett Butler; [email protected]
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