Fevertree Drinks PLC Trading Update (0187M)
19 May 2022 - 4:00PM
UK Regulatory
TIDMFEVR
RNS Number : 0187M
Fevertree Drinks PLC
19 May 2022
Fever-Tree Drinks plc
TRADING UPDATE
May 19, 2022
Fever-Tree, the world's leading supplier of premium carbonated
mixers, announces a trading update ahead of its Annual General
Meeting ("AGM"), which is being held today at 11.30am BST.
Fever-Tree has made a solid start to the year, trading in-line
with expectations set out in March.
On-Trade
In the UK, our most mature market, On-Trade sales at the start
of the year were impacted by Omicron, but we have continued to see
momentum build month to month. In the US and across key European
and RoW markets, our On-Trade sales have been strong and are
already well above pre-pandemic levels. As we look ahead to the
summer months our brand strength, growing presence, and the close
relationships we have built with our partners puts us in a strong
position to take advantage of the consumer appetite to return to
social occasions out of home.
Off-Trade
In the UK Off-Trade, in the first few months of the year the
category has continued to rebalance as the On-Trade re-emerges
whilst also lapping last year's lockdowns. We remain well placed as
we move into the summer months and have strong plans in place with
retailers, most notably around the Platinum Jubilee celebrations in
early June. Elsewhere, Fever-Tree continues to perform well in the
Off-Trade. In the US consumer demand remains very strong and
Fever-Tree's sales continue to show impressive growth with an
increase of over 150% since pre-pandemic levels in 2019[1]. In
Europe, the brand's strong sales and value share gains across our
key markets remain encouraging, and in Australia and Canada our
position as the clear premium mixer category leader is enabling us
to capitalise on and drive the trends in long mixed drinks.
Investing in products and infrastructure
We continue to innovate and broaden our portfolio of drinks
across regions. In the first few months of the year, we have
launched a Limited-Edition Passionfruit & Lime Tonic in the UK,
which has received strong initial Off-Trade interest ahead of the
summer, as well as launching our Sparkling Pink Grapefruit Soda in
the On-Trade in the UK and Europe after its continued stand-out
success in the US. We continue to be excited by our innovation
pipeline and look forward to a number of new product launches over
the next 18 months.
Alongside our investment in innovation, we remain focused on
scaling production in the US with our local bottling partner. The
West Coast bottling line is operational whilst the East Coast line
is gradually ramping up during the first half of this year, and
once fully operational, will add further capacity and flexibility
to our network. This will not only enable us to execute on the
substantial opportunity in the US, but also progressively reduce
our exposure to elevated shipping costs and delays, as well as
reduce the carbon emissions associated with our supply chain.
FY22 outlook
We continue to operate against an industry-wide backdrop of
logistics disruption, most notably in relation to the shipping of
product to the US, and inflationary cost pressures. Whilst
uncertainty remains in the near term, we are working with our
supply chain partners on a large number of initiatives, including
the ramping up of US East Coast production, which will help to
mitigate these cost pressures as we progress further through this
year and more so as we progress into 2023.
Against this backdrop our team remains focused on supplying our
customers and maintaining our strong top line growth. We are not
only confident in the long-term prospects for the brand, but also
of delivering another good performance this year and are trading in
line with the Board's expectations for the full year to 31 December
2022, as set out in March: Revenue range of c.GBP355m - GBP365m and
an EBITDA range of c.GBP63 - GBP66m.
For more information please contact:
Investor queries
Ann Hyams, Director of Investor Relations I
ann.hyams@fever-tree.com I +44 (0)7435 828 138
Media queries
Oliver Winters, Director of Communications I
oliver.winters@fever-tree.com I +44 (0)770 332 9024
Nominated Advisor and Joint Broker - Numis Securities
Stuart Dickson I Matt Lewis I Hugo Rubinstein I +44 (0)20 7260
1000
Joint Broker - Investec Bank plc
David Flin I Alex Wright I +44 (0)20 7597 5970
Financial PR advisers - Finsbury
Faeth Birch +44 (0)7768 943 171; Anjali Unnikrishnan +44 (0)
7826 534 233; Carolina Neri +44 (0)7502 127 516
[1] Nielsen 12 weeks to 26 March 2022 vs 12 weeks to 23 March
2019
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFFDELITLIF
(END) Dow Jones Newswires
May 19, 2022 02:00 ET (06:00 GMT)
Fevertree Drinks (LSE:FEVR)
Historical Stock Chart
From Apr 2024 to May 2024
Fevertree Drinks (LSE:FEVR)
Historical Stock Chart
From May 2023 to May 2024