Fevertree's cup runneth over as full-year guidance upgraded

Shares in Fevertree Drinks fizzed higher after the mixers maker reported that its full-year results will be better than expected as the company sinks its teeth into its US expansion.

The Chelsea-based company said full-year numbers will be “comfortably ahead” of previous forecasts, with reported results for the first six months of the year already showing revenues of £104.2m, a 45% increase over the same period last year.

Off the back of the boosted revenues, cash balance in excess of £62m and a launch in the US, Fevertree increased its interim dividend by 40% to 4.22p.

Chief executive Tim Warrillow said: "Our relationships with key customers and spirits partners mean we are increasingly well positioned as the growing move to premiumisation and long mixed drinks continues to develop across the globe."

The AIM-traded company’s strong UK results, which showed a 73% increase in revenues to £58m, were driven by off-trade sales growth to major retailers.

The period also saw the launch of ‘Refreshingly Light’, the company’s brand of low calorie mixers which have achieved a "strong" rate of sales performance in the first four months since its introduction.

"We have successfully launched our wholly owned US operations with a talented team recruited and now in place. The exclusive distribution agreement with SGWS, the largest North American wine and spirits distribution company, is a significant endorsement and provides a strong platform for Fever-Tree US in 2019 and beyond," said Warrillow.

US sales rose 15% to £15.1m in the first half of the year but, with a new management team in place and offices set up in New York, Fevertree will look to boost that number significantly in the two years.

Big steps have already been made, with the company recently signing an on-trade distribution deal with SGWS, the largest distributor of wines and spirits in North America.

Fevertree Drinks’ shares were up 13.29% at 3,914.00p at 1026 BST.