Fevertree sees yearly profit fall on higher costs but lifts dividend

(Alliance News) - Fevertree Drinks PLC on Wednesday reported a drop in annual profit as it ...

Alliance News 22 March, 2023 | 10:07AM
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(Alliance News) - Fevertree Drinks PLC on Wednesday reported a drop in annual profit as it struggled with higher costs in 2022, particularly pricier glass used for its bottled sodas.

Shares were up 6.2% at 1,145.00 pence each on Wednesday morning in London.

The London-based premium drink mixers producer said pretax profit totalled GBP31.0 million in 2022, down sharply from GBP55.6 million in 2021, as operating profit fell to GBP30.6 million from GBP55.6 million.

Administrative expenses increased to GBP88.2 million from GBP75.3 million a year earlier.

Revenue, however, climbed by 11% to GBP344.3 million from GBP311.1 million. This was particularly driven by 23% growth across the UK and 14% growth in Europe.

Fevertree explained that industry-wide inflationary pressure hurt its margin during the year, most notably in glass costs and trans-Atlantic freight costs. Gross margins thus reduced to 34.5% from 42.1% a year earlier.

This was partially mitigated by positive pricing actions and improvements in sales mix.

Chief Executive Officer Tim Warrillow said: "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 Rest of the World. We have seen an encouraging start to 2023 in our key growth markets and are confident of maintaining the group's momentum in the months ahead."

Adjusted earnings before interest, tax, depreciation and amortisation amounted to GBP39.7 million, down from GBP63.0 million in 2021.

Fevertree proposed a full-year dividend of 16.31 pence per share, up 2.0% from 15.99p a year prior.

The company also reiterated its full-year guidance for 2023, which expects revenue between GBP390 million and GBP405 million and earnings before interest, tax, depreciation and amortization between GBP36 million and GBP42 million.

By Xindi Wei, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Fevertree Drinks PLC 1,189.00 GBX -0.50 -

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