Fevertree Drinks' interim revenues bubble higher in all regions

Fevertree Drinks served up a sparkling round of first-half results, with strong revenue growth in all regions and a tasty increase in earnings.

Interim results for the six months to 30 June showed revenues were up 69% to £40.6m while the gross margin was increased by 54.8% to enable earnings before interest, tax, depreciation, amortisation, share based payment charges and finance costs to grow 73% to £12.4m.

With diluted earnings per share up 83% to 8.12p, the interim dividend was increased by 97% to 1.54p per share.

The UK remained the company’s largest market as sales increased by 39% with revenue growth of 108%, of which on-trade sales were 57% as growth was driven by an increase distribution with increasing demand for gin and tonic.

Off-trade sales were helped by distribution gains made following the launch of 150ml cans in June, which represented 24% of sales, and a listing with Asda, with boosts from takeup from easyJet and British Airways to come in the second half.

Fevertree has an 11% value share in the UK retail mixer category and the company is aiming for 16.5%.

Continental Europe grew 42% and the US by 59%, both of which aided by the weakness of the pound, while in the rest of the world sales grew by 73%, with Australia and Canada seeing strong on-trade growth and successful initial off-trade listings with major local retailers.

With the impact of the new airline take-ups to come in the second half, chief executive Tim Warrillow said he remained confident about the outlook for the full year.

"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," he said.

Shares in Fevertree Drinks were up 3.4% to 835p by mid afternoon on Tuesday.