24th January 2019
Fevertree Drinks plc
("Fever-Tree" or the "Group")
Fever-Tree, the world's leading supplier of premium carbonated mixers, is pleased to announce its trading update for the year ended 31 December 2018, ahead of its Preliminary Results on 26th March 2019.
Full year revenue is expected to be circa £236 million, reflecting growth of 39% on 2017, driven by:
- very strong revenue growth of circa 52% in the UK with robust rate of sales growth in both the on and off trade channels. The UK enjoyed an outstanding summer trading period and finished the year with a strong performance over Christmas. The Group further strengthened its position as the number one mixer brand by value in the UK off-trade* whilst continuing to broaden its distribution across the on-trade.
- significant operational progress in the USA in our first period of direct management of the region, with growth in the second half accelerating, resulting in full year revenue circa 21% ahead of 2017. The relationship with Southern Glazer's Wine & Spirits continues to develop well and the Group is confident that the exclusive on trade agreement signed with them in the second half, alongside the positive progress seen in the off-trade, provides an excellent platform for further growth in 2019.
- acceleration in sales growth in Continental Europe in the second half of 2018, with full year revenue anticipated to be circa 24% ahead of 2017. The Group saw positive momentum across a number of key territories, and we remain at the forefront of the premium mixer category across the region.
- encouraging performance in the Rest of the World with full year revenue expected to be circa 48% ahead of 2017.
Year-end net cash position is anticipated to be in line with Board expectations.
Reflecting the continued strong performance in the second half, the Board expects that the outcome for the full year will be comfortably ahead of the Board's expectations.
*(IRI - Total UK Retail Mixer Market value share - 13 weeks to 31/12/18)
Commenting on today's announcement, Tim Warrillow, Co-founder and CEO of Fever-Tree said:
"We have seen very strong momentum across the business during 2018. The UK delivered an exceptional performance while Europe has seen positive performance resulting in growth accelerating in the second half. We are particularly encouraged by the progress to date in the USA and the strong platform for further growth this provides.
The progress we have seen during the last 12 months means we enter 2019 very well positioned and remain optimistic about the long-term global opportunity ahead.
Drinking habits are changing. The rise of premium spirits and the advent of premium mixers has reinvigorated and re-established the quality and enjoyment of the long-mixed drink, be it a gin & tonic, vodka & ginger beer or whiskey & ginger ale to name but a few. Fever-Tree is at the forefront of this trend, broadening the appeal of the spirits category, drawing in new consumers and with it providing a genuine alternative to the beer and wine occasion."
For further information:
Fevertree Drinks plc +44 (0)20 7349 4922
Tim Warrillow, Co-founder and CEO
Andy Branchflower, Finance Director
Oliver Winters, Communications & IR Director
Numis Securities - Nominated Adviser and Joint Broker +44 (0)20 7260 1000
Investec Bank plc - Joint Broker +44 (0)20 7260 1000
Brunswick Group +44 (0) 20 7404 5959
Notes to Editors:
Fever-Tree is the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, with distribution to over 70 countries worldwide. Based in the UK, the brand was launched in 2005 to provide high quality mixers which could cater to the growing demand for premium spirits, in particular gin, but also increasingly for vodka, rum and whisky. The Company now sells a range of carbonated mixers to hotels, restaurants, bars and cafes ("On Trade") as well as selected retail outlets ("Off Trade").
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