Share Prices & Company Research

Market News

18 Mar 2021 | 09:00

Fevertree profit drops but dividend rises

(Sharecast News) - Fevertree's annual profit dropped 29% after the Covid-19 crisis caused revenue to fall but the mixer-drinks maker increased its dividend.

Pretax profit fell to £51.6m from £72.5m in the year to the end of December as revenue fell 3% to £252.1m. Gross profit fell 12% to £116.3m.

On-trade sales at bars and restaurants, which normally make up 45% of sales, were hit hard by the Covid-19 crisis but retail and other off-trade sales exceeded expectations in all regions.

Fever Tree increased its final dividend to 10.27p a share from 9.88p taking the annual payout to 15.68p a share. The company said it expected revenue to increase by between 12% and 16% in 2021.

Tim Warrillow, Fever Tree's chief executive, said: "Our performance in the off-trade was especially strong, exceeding our expectations across all our regions. Numerous periods of lockdown during the year encouraged increased consumer interest in premium spirits and stimulated excitement about mixing drinks at home, attracting more households and new consumers to the Fever-Tree brand than ever before."

The company said it expected off-trade sales to stay strong despite some unwinding as lockdowns are eased and that momentum would build in on-sales as 2022 progresses.

Fevertree shares fell 9.8% to £22.90 at 10:13 GMT. The shares have more than doubled in the past year.

William Ryder, equity analyst at Hargreaves Lansdown, said: "Fevertree has had a tough year as lockdowns forced bars and restaurants to shut their doors for large chunks of the year.

"The market reaction may have disappointed some investors this morning, but this just goes to show how high expectations are and the risks of a demanding valuation. From a business perspective we think Fevertree has coped reasonably well over the last year."

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 14th May 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.