2017 Pre-close Trading Update
Fever-Tree, the world's leading supplier of premium carbonated mixers, is pleased to announce its trading update for the year ended 31 December 2017.
The Company has delivered another period of very strong growth with full year revenue expected to be circa £169 million, reflecting growth of 66% on 2016 with sales in the second half expected to be ahead of the prior year period by 58%.
The performance in the UK in the second half of 2017 has once again been exceptionally strong. The Company gained significant market share from its competitors culminating in Fever-Tree ending the year as the number one mixer brand by value in the UK off-trade channel. (IRI - Total UK Retail Mixer Market value share - 13 weeks to 31/12/17).
Full year revenue in the UK is expected to be circa 96% ahead of 2016. The Group's performance over the Christmas period was particularly notable with impressive rate of sales growth across all channels, formats and flavours. The growth of the mixer category continues to accelerate, driven by Fever-Tree's unwavering focus on quality and supported by the on-going premiumisation of the wider spirits sector.
Sales in Continental Europe performed well in the second half of 2017, and it is anticipated that full year revenue will be circa 42% ahead of 2016.
In the USA, strong revenue growth also continued during the second half of 2017, and as a result, full year revenue for the territory is expected to be circa 39% ahead of 2016. The establishment of a North American office and the appointment of Charles Gibb as North American CEO, announced in December 2017, were significant milestones and reflect the Group's ambition and commitment to the North American market.
Rest of World sales growth accelerated in the second half of 2017 and full year revenue is expected to be circa 57% ahead of 2016.
In view of the Company's very strong sales performance in the final two months of the year, the Group took the opportunity to bring forward planned operational expenditure in the US to invest ahead of growth. Year-end net cash position is anticipated to be in line with Board expectations with significant cash balances still to collect given the strength of trading over the Christmas period.
Reflecting the continued strong performance through to the end of the year, the Board expects that the outcome for the full year will be comfortably ahead of market expectations.
Fever-Tree will announce its Preliminary Results on 13th March 2018.
Commenting on today's announcement, Tim Warrillow, Co-founder and CEO of Fever-Tree said:
"I am very proud of our performance in 2017 which has seen Fever-Tree end the year as the number one mixer brand at UK retail. Our pioneering approach and commitment to providing consumers with the highest quality range of mixers continues to capture peoples' imagination and is transforming the wider UK mixer category which as a result is now the fastest growing category across the soft drinks sector.
While we have seen strong growth across all regions, our performance in the UK over the Christmas period was once again exceptional. Our growing range of mixers and formats are appealing not only to our loyal customers but also bringing consumers back to the category and importantly attracting a new younger audience.
There is clear evidence that the same trends of premiumisation and mixability that we've previously highlighted are accelerating and we are increasingly excited by the global opportunity this presents particularly as we transition to our own operations in the US."