22nd Apr 2020 09:54
(Alliance News) - Carbonated mixers maker Fevertree Drinks PLC on Wednesday reported a revenue rise in 2019, but added that sales in restaurants and bars have since been hit by the Covid-19 pandemic.
Undeterred, Fevertree upped its annual dividend by 4.0% to 15.08 pence per share from 14.50p. Many listed companies have decided to postpone or cancel payouts due to the virus health crisis.
In 2019, Fevertree's revenue was 9.7% higher at GBP260.5 million from GBP237.4 million. Pretax profit was 4.1% lower, however, at GBP72.5 million from GBP75.6 million.
Depreciation costs more than climbed to GBP2.2 million from GBP700,000 and finance expenses doubled to GBP200,000.
Adjusted earnings before interest, tax, depreciation and amortisation were 1.3% lower at GBP77.0 million from GBP78.6 million, "reflecting ongoing investment for future growth".
Chief Executive Tim Warrillow said: "The group delivered good growth in 2019 despite a more subdued UK market, with double-digit growth across our international regions. We strengthened our global leadership position and in doing so continued to build a strong platform to deliver long term, sustainable growth."
Sales in the US alone climbed by a third, Fevertree noted. UK sales were 1.0% lower.
The company reported a "solid start" to 2020 with trading in the first two months in line with expectations.
Like other companies, its trading was hurt thereafter as the Covid-19 virus spread across the globe.
"Clearly the scale and impact of Covid-19 has posed some significant challenges across our regions," Warrillow added.
In its On-trade channel - meaning pubs, bars and restaurants - trading has been hurt. Venues have been forced to close as governments grapple to halt the spread of the deadly virus. The On-trade segment accounts for 45% of Fevertree sales.
In the Off-trade segment - meaning sales in grocery stores and other food retailers - the initial weeks of the health crisis saw "strong sales".
Fevertree added: "Given the level of uncertainty and the dynamic nature of the situation, it is too early to quantify Covid-19's full impact on the remainder of the financial year. While we will not be unaffected by the current situation, especially in the On-trade, we are a global business with revenue diversified across regions, channels and customers."
Fevertree shares were 11% higher at 1,515.25p each in London on Wednesday morning.
By Eric Cunha; [email protected]
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