Mixers brand Fever-Tree Drinks has reported a 14% increase in revenue in the half year to 30 June, according to interim results published by the group.
Its UK business reported a 6% increase in revenue, while the US was up by 11% and Europe by 27%, with 'consumer demand remaining strong', particularly in the US and Southern Europe.
The group's margin took a 670bps hit, however, as pricing actions and an improvement in sales mix 'only partially mitigated' rising inflationary and product cost headwinds, the group said.
Fever-Tree reported total revenue of £160.9 million (€185.8 million) for the period, with adjusted EBITDA coming in at £21.9 million (€25.3 million).
'Robust Revenue Performance'
"Fever-Tree has delivered a robust revenue performance in the first half of 2022, with a particularly strong performance in Europe as the on-trade recovered," commented Tim Warrillow, chief executive.
"Alongside driving topline growth, the business remains extremely focused on mitigating the industry-wide cost impacts and whilst we are still highly mindful of the extreme volatility impacting energy-related and logistics costs, we do expect to see a gradual decrease in our exposure over the medium term."
Looking ahead, the business noted that 'uncertainty and the risk of disruption remains elevated', adding that it remains confident in its ability to deliver long-term sustainable growth.
It reiterated its revenue guidance range of £355 million (€410 million) to £365 million (€421.6 million) for the full year, with a gross profit margin in a range of 33% to 35%, and an EBITDA range of c. £37.5 million to £45 million.
© 2022 European Supermarket Magazine – your source for the latest A Brands news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.