Fevertree Drinks PLC (LON:FEVR) deflated on Thursday despite forecasting 12-16% revenue growth this year, with margins consistent with last year.
The posh mixers producer said the first months of the new year have seen a continuation of very positive trading in the off-trade across all its regions, though some of that demand is expected to switch to the on-trade as Coronavirus restrictions are eased worldwide.
READ: Fevertree Drinks upgrades earnings expectations, ramps up US operations with new bottling partner
The on-trade channel, which serves restaurants and bars, continues to be impacted by lockdowns.
In the year to December 31, total sales shed 3% to £252mln, with the UK - its main market - down 22%, while the rest of the world, US and Europe were up 58%, 23% and 1% respectively.
Adjusted underlying earnings (EBITDA) tumbled 26% to £57mln due to extra investments and the COVID-19 hit, while the dividend was raised 4% to 15.68p per share. Cash at year-end was £143mln.
The AIM-listed firm focused its marketing spend on increased at-home consumption and launched its first-ever national television advertisement in the UK.
It also launched a new premium soda range in the UK targeted for vodka and a sparkling pink grapefruit in the US for tequila.
Analysts at Liberum said the performance reflects the resilience of the brand and the robustness of the international strategy.
“We continue to expect Fever-Tree to be a winner once on-trade re-opens,” the broker commented.
“The strong off-trade share gains achieved over 2020 are reflective of the consumers’ desire to recreate premium long mixed drinks and cocktails at home, and should translate into more on-trade sales once lockdown ends.”
Shares lost 9% to 2,308p on Thursday morning.