The Fevertree Drinks PLC (LON: FEVR) share price surged 11.6% after releasing its preliminary results for the financial year that ended 31 December 2022. The company reported robust revenue growth of 11% to £344.3 million from £311.1 million in 2021.
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The producer of premium drink mixers revealed that its pretax profits of £39.7 million were slightly ahead of expectations. The company’s sales in most regions grew, led by the United States, which recorded 23% growth from £77.9 million to £95.6 million.
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However, the United Kingdom registered a 2% decline in revenues to £116.2 million from £118.3 million in 2021. Fevertree’s gross margins were affected by inflationary pressures, which affected the entire industry, primarily driven by trans-Atlantic freight costs and glass costs.
The company paid a special dividend of £50 million in May 2022 and proposed a full-year ordinary dividend of 16.31p per share, representing a 2% annual increase. The firm reiterated its revenue guidance range for 2023 of £390 million to £405 million.
Fevertree revealed that it was taking measures to mitigate against the impact of rising operating costs led by the high cost of glass and the high transportation costs. The company is hiking prices across its product categories to compensate for the high operating costs.
The company also said it continues to cement its position as the leading premium mixer globally while making significant progress on its strategic priorities. The firm is a clear market leader in the UK and continues to build its operations for long-term success in the United States.
Fevertree acquired a non-carbonated cocktail mixer business in the US, which should accelerate the launch of its cocktail mixer range in 2023. The company also invests in its brands across Europe, Canada, Japan and key international markets.
Tim Warrillow, Fever-Tree’s Co-Founder and CEO, commented: “The Group has delivered a strong sales performance with double-digit revenue growth underpinned by a very encouraging 18% average growth across the US, Europe and the Rest of the World. These regions now account for nearly 70% of our business, and their continued strong growth underlines our position as the world's no.1 premium mixer brand.”
*This is not investment advice.
The Fevertree share price.
The Fevertree share price surged 11.6% to trade at 1200.3p, from Tuesday’s closing price of 1075.5p.
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