Fever-Tree Continues Strong Growth
Fever-Tree, the UK-based supplier of premium carbonated mixers, has reported a 69% increase in revenue to £40.6 million for the first half ended 30 June 2016 ended 30 June 2016 with adjusted EBITDA rising by 72% to £12.4 million. Gross profit margin improved to 54.8% from 50.5% in the first half of 2015. Accounting for 39% of group sales, the UK remains Fever-Tree’s largest market and exhibited revenue growth of 108% compared to the first half of 2015.
Fever-Tree is the world’s leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, with distribution to over 50 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). Approximately 65% of the group’s sales were derived from outside of the UK in financial year 2015, with key overseas markets in the US and Europe.
Tim Warrillow, chief executive of Fever-Tree, comments: “We are delighted to report that the group’s strong performance throughout 2015 has continued into the first half of 2016. Growth has continued to come from all of our regions as evidenced by further distribution gains in both the on and off-trade, as well as continued underlying sales growth. We have made excellent progress in developing the optimum infrastructure, relationships and team to capitalise on the strength of our brand and market leading position as the trend for premium spirits continues to gather momentum across all our key geographies.”
Fever-Tree’s primary bottling partner in the UK has finalised investment in a new site, which will double its existing capacity from 2017 onward and further improves production contingency for the group. Fever-Tree now bottles and cans with four partners across the UK and Europe and has been actively exploring further opportunities to bottle closer to its main sales regions.
