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Fevertree Drinks PLC on Thursday reported an uptick in total annual revenue, despite declining returns from the UK.
For the year ended December 31, the London-based premium drink mixers producer reported revenue of £344.3 million, up 11% from £311.1 million a year prior.
UK revenue fell by 1.8% to £116.2 million from £118.3 million a year ago, while US revenue increased by 23% to £95.6 million from £77.9 million.
Revenue for Europe grew to £101.0 million, up 15% from £88.2 million a year ago, while ‘rest of the world’ revenue increased by 18% to £31.5 million from £26.7 million. Fevertree said it has continued to invest in global growth opportunities, demonstrated by its non-UK growth.
Despite the increase in global sales, Fevertree failed to meet its revenue guidance issued in September of between £355 million and £365 million.
Going into 2023, Fevertree said high European energy costs will have a significant impact on glass bottle pricing, with the company expecting additional costs of £20 million as a result of the increased costs of glass manufacture. About 80% of Fevertree’s products are sold in glass bottles.
Fevertree noted that it is working with suppliers to reduce costs, but that the premium format of its products is integral to the business.
Fevertree updated its revenue guidance to between £390 million and £405 million in 2023, representing growth of between 13% and 18%.
The company said it remains confident of its place in the market, arguing that it remains the ‘clear leader of the UK mixer category’ thanks to gains in distribution and market share.
It anticipates earnings before interest, taxes, depreciation and amortisation of about £39 million, in line with market expectations.
Chief Executive Officer Tim Warrillow said: ‘2022 has seen the Fever-Tree brand continue to gain traction and prominence across the globe resulting in double digit revenue growth and profits in line with expectations.
‘Looking ahead to 2023, we remain very confident in delivering strong top line growth, most notably in the US. Whilst the initiatives we are implementing would have driven margin improvement during the year, the energy related cost increases, which are particularly acute across the glass industry, mean we expect to deliver absolute Ebitda in-line with 2022.’
Fevertree shares were down 3.8% trading at 1,074.72 pence per share on Thursday afternoon in London.
By Harvey Dorset, Alliance News reporter
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