Fizzy mixer brand Fever-Tree sees European revenues surge as holiday spots bolster stocks
Fever-Tree has seen its European revenues surge outside of the UK as hospitality destinations bolstered stock in anticipation of summer holiday goers.
However, ongoing travel confusion and ‘Freedom Day’ fears may have knocked investors faith – as it saw its shares plummet 7.10 per cent this afternoon, dragging its total share price to 2,276.
The fizzy mixer company picked up pace on the continent in the six months to 30 June, rocketing 79 per cent and raking in £36.7m in revenue.
In the UK, where Fever Tree’s enjoys its highest demand, revenue lifted just four per cent to £50.3m. Meanwhile, total revenue was £141.8m – some £37.6m more than the year prior.
Demand and logistics
“There have been clear signs of pent-up demand as bars, restaurants and pubs reopened, albeit slightly tempered by the continuation of social distancing and capacity restrictions,” the company said in a statement regarding its UK performance.
The company added that it is well-positioned to reap the rewards of yesterday’s so-called ‘Freedom Day’, as nightclubs reopen and larger events are allowed.
With growth ahead of the board’s forecasts, the company said it is lifting its revenue guidance to between £295m and £304m for the full year.
Despite the positive growth, the company was bruised by pandemic-induced logistics hang-ups.
“Our margins have been notably impacted by global logistics disruption. Despite this, we remain confident as ever in the strength of our business model and the opportunity to improve margins as we cycle out of the current period of Covid disruption,” CEO Tim Warrillow said.
“Our long-term opportunity continues to be enhanced by the structural trends we are seeing, including the growing interest in premium spirits and the popularity of long mixed drinks.”