Fevertree fizzes higher as profits surge, sees FY 'materially ahead' of expectations

Shares in Fevertree Drinks fizzed higher on Tuesday after the supplier of carbonated mixers upgraded its full-year guidance and reported a surge in first-half pre-tax profit on the back of strong growth across all regions, channels and flavours.

In the six months to the end of June, pre-tax profit rose to £24.1m from £11.8m the year before, on revenue of £71.9m, up from £40.6m. Meanwhile, adjusted earnings before interest, tax, depreciation and amortisation were up 102% to £25.2m and the interim dividend was lifted by 95% to 3.01p per share.

In the UK, sales were up 113%, while Continental Europe saw sales grow 64%. Rest of World sales rose 45%, with sales in the US up 43%.

Given its strong performance in the first half, the company said it now expects the outcome for the full year to be "materially ahead of its expectations".

Chief executive officer Tim Warrillow said: "We are delighted to report another strong performance in the first half of 2017, continuing the momentum seen in 2016. We achieved growth in all our regions, driven by further distribution gains and underlying rate of sales growth as the two key trends of premiumisation and mixability continue to gather pace globally.

"We continue to invest and improve our infrastructure, relationships with key suppliers and customers as well as adding to our senior team. The strength of our brand and first mover advantage means we are well positioned as the opportunity for premium mixers continues to gather momentum across our key markets."

At 0915 BST, the shares were up 9.3% to 1,906.50p.