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24 Jul 2018 | 08:42

Fever-Tree expects to 'comfortably' exceed expectations as profits jump in H1

Premium carbonated drinks supplier Fever-tree reported Tuesday annual performance would 'comfortably' exceed full-year expectations as first-half pre-tax profit rose 35.6%, led by strong UK performance.

For the six months to June 30, profit before rose 35.6% to £32.65m from £24.08m the same period a year ago, revenues rose 45% to £104.2m, gross profit margin fell to 53.2% from 54.5%, while adjusted EBITDA rose to 35% £34.0m from £25.2m. 'The first half of 2018 has been one of major progress for Fever-Tree. The Group delivered a strong performance, most notably in the UK, as we continue to drive and lead the evolution of the wider mixer category, Tim Warrillow, CEO of Fever-Tree said. In the UK, the group's longest established market, revenues jumped by 73% to £58m driven by the underlying rate of sale growth across the company's major retailers.

The off-trade accounted for 50% of UK sales, while the on-trade channel achieved strong revenue growth, driven by underlying rate of sale growth and an expanding distribution footprint.

The UK mixer category remained the fastest growing category in the carbonated soft drinks sector, with growth of 31% at retail in the 12 months to June 2018, the company said. The USA, the group’s second largest single market, reported sales growth of 15% to £15.1m

Sales growth of 17% to £25.8m was achieved across Continental Europe in first half of the year despite tough comparators due to the early phasing of the pre-summer sell-in to the company's key territories in June 2017, Fever-Tree said.

Sales growth of 67% was achieved within the rest of world region.

An interim dividend of 4.22p per share was recommended to shareholders, up from 3.01p per share the same period a year ago. 'Given the strong performance in the first half of the year, the Board anticipates that the outcome for the full year will be comfortably ahead of its expectations,' the company said.

At 8:42am: (LON:FEVR) Fevertree Drinks Plc share price was +289p at 3744p

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