Information  X 
Enter a valid email address

Fevertree Drinks PLC (FEVR)


Tuesday 26 March, 2019

Fevertree Drinks PLC

Preliminary Results

RNS Number : 9519T
Fevertree Drinks PLC
26 March 2019

26th March 2019

Fevertree Drinks plc

 ("Fever-Tree" or the "Group")


Preliminary Results


Fever-Tree, the world's leading supplier of premium carbonated mixers, today announces its Preliminary Results for the year ended for 31 December 2018.


Financial highlights:


·      Revenue up 40% to £237.4m (2017: £170.2m)

·      Gross profit margin of 51.8% (2017: 53.5%)

·      Adjusted EBITDA* of £78.6m (2017: £58.7m)

·      Profit after tax of £61.8m (2017: £45.5m)

·      Diluted EPS of 53.19 pence (2017: 39.15 pence)

·      Net cash at year end of £83.6m (2017: £50.9m)

·      Final dividend of 10.28 pence per share recommended to shareholders, bringing the total dividend for the year to 14.50 pence per share (2017: 10.65 pence per share)


Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share based payment charges and finance costs.


Operational highlights:


·      Consolidated position as number one mixer brand by value1 in the UK Off-Trade channel while continuing to gain share across the On-Trade

·      Transition to wholly-owned operations in the US with Fever-Tree USA now directly managing marketing, sales and distribution

·      Made gains across Continental Europe in both the On and Off-Trade, as well as driving category growth in many of the key markets in the region 

·      Continued focus on innovation & product development with the extension of the Refreshingly Light low-calorie range as well as successful new product launches of Cucumber Tonic and Citrus Tonic

·      Further strengthening of the Board with the appointment of three non-executive Directors with a breadth of relevant beverage and international experience

·      Named the no.1 best-selling and no.1 trending tonic water in Drinks International's survey of world's top 250 bars for the fifth year running


1.     (IRI - Total UK Retail Mixer Market value share - 13 weeks to 31/12/18).


Tim Warrillow, Co-founder and CEO of Fever-Tree said:

"2018 was a significant year for Fever-Tree. In the UK, we strengthened our position as the leading mixer brand in the Off Trade. In the US, we successfully established our own operations and the business made real progress in deepening and widening its presence in multiple European regions. As the world's leading premium mixer brand with a strengthening global distribution network we are well set to drive the international opportunity as the move towards the premium long mixed drink continues to gather momentum around the world.

At this early stage in the year, the Group is trading in line with Board expectations and we remain excited about the size of the opportunity that lies ahead."


For further information:


Fevertree Drinks plc                                                                     +44 (0)20 7349 4922

Numis Securities - Nominated Adviser and Joint Broker         +44 (0)20 7260 1000

Brunswick Group                                                                         +44 (0) 20 7404 5959

Jonathan Glass

Fiona Micallef-Eynaud

Cerith Evans


Notes to Editors:


Fever-Tree is the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, with distribution to over 70 countries worldwide. Based in the UK, the brand was launched in 2005 to provide high quality mixers which could cater to the growing demand for premium spirits, in particular gin, but also increasingly for vodka, rum and whisky. The Company now sells a range of carbonated mixers to hotels, restaurants, bars and cafes ("On-Trade") as well as selected retail outlets ("Off-Trade").



2018 has been a year of further operational and financial progress for Fever-Tree. The Group reinforced its market leading position in the global premium mixer category, expanded its international footprint, including the establishment of Fever-Tree USA, and continued to build a talented team across the globe - all the while remaining true to the entrepreneurial and pioneering culture of its co-founders.


Group revenue was £237.4m, reflecting a 40% increase compared to 2017, with adjusted EBITDA increasing to £78.6m (2017: £58.7m). While the UK, our longest established market, once again led the way in terms of revenue growth, the Group's other regions all saw positive momentum in 2018.


Fever-Tree pioneered the concept of the premium mixer to partner the ongoing premiumisation of the spirits category and the increasing focus on simple long mixed drinks. The Group's strategy remains unchanged to this day and the year under review has seen the Group continue to build an excellent platform for capturing the global opportunity ahead. To this end, the establishment of Fever-Tree USA was a significant milestone and I have greatly enjoyed meeting the team in the US over the course of the year and am impressed by their professionalism and appetite for the opportunity ahead in that market. The Group also continues to make great progress across multiple markets in Europe and we have strengthened our European management team to reflect our growing ambitions for that region. 2018 also saw the further development of our Corporate Social Responsibility agenda, including increasing the Group's support for the hugely important work being done by Malaria No More.   


The Board is pleased to recommend a final dividend of 10.28 pence per share, bringing the total dividend for 2018 to 14.50 pence per share (2017: 10.65 pence per share). If approved by the shareholders at the AGM on 24 May 2019, it will be paid on 31 May 2019 to shareholders on the register on 26 April 2019.


As Fever-Tree continues to grow, its people and culture remains integral to our future success. I have been particularly encouraged by the focus on and commitment to the development of our employees throughout 2018. The passion and creativity that I have seen across the business remains a source of inspiration and on behalf of the Board I would like to thank all our employees for their hard work and dedication. 

During the year, it was my pleasure to welcome Kevin Havelock, Jeff Popkin and Domenic De Lorenzo as non-executive Directors of the Group. They each have highly impressive track records across the beverages sector and a breadth of relevant international experience that has already brought valuable insight and additional perspective to the Group.


Fever-Tree has the strategy, products, people and proposition to deliver long term sustainable growth. I look forward to working with my Board colleagues and the wider Fever-Tree team in the year ahead.

Bill Ronald








2018 has been one of the most significant years since Charles and I founded Fever-Tree over 15 years ago. It has been a year where, perhaps more than any other, we have seen how the advent of the premium mixer, alongside the rise of premium spirits, is reinvigorating and re-establishing the prominence of simple long mixed drinks in the minds of the trade, retailers and most importantly the consumer. Fever-Tree continues to drive this trend through our product development, consumer engagement and the strength of our relationships with customers as well as spirits partners, not just in the UK but across many of our key markets in mainland Europe and the USA with the move to premiumisation across spirits categories and the evolution of drinking habits underpinning the global opportunity.

2018 saw the Group deliver revenue of £237.4m, representing growth of 40% on 2017. This revenue growth was underpinned by strong margins, with a gross profit margin of 51.8% and adjusted EBITDA margin of 33.1%, which translated to profit after tax for the year of £61.8m, representing growth of 36% on 2017. We ended the year with net cash of £83.6m, an increase of 64% on last year.

Regional Review

We consider our global sales across four regions, being the UK, USA, Continental Europe, and Rest of the World ("RoW").


In the UK the Group delivered growth of 53% with revenue of £134.2m (2017: £87.8m) and in doing so consolidated our position as no. 1 mixer brand in UK retail with 42% market share (IRI) in what remains one of the fastest growing categories in carbonated soft drinks.

The Group's performance over the summer was exceptional, aided by the prolonged period of hot weather as well as a number of significant national events including the Football World Cup and Royal Wedding all of which contributed to the continued growth and popularity of the gin category with more gin being sold during the three months of the summer in 2018 than the summers of 2014 and 2015 combined with the category now worth £1.9bn in the UK.  The Group finished the year with a good performance over Christmas which saw further gains in market share from our competitors in December, illustrating once again Fever-Tree's ability to drive growth in the mixer category.

We delivered another strong performance in the Off-Trade in 2018.  While we remain well established across the main estate of our major retailers, the Group continued to benefit from increased presence on the shelf, with gains across our flavours and formats.  Our extended range of Refreshingly Light mixers were introduced in the first half and gained significant incremental distribution alongside our regular range in many of our retailers.  We have been pleased with how the range has performed and our decision to offer choice between our regular and light ranges without comprising on quality or taste, has clearly resonated with consumers and retailers alike. The Group's underlying rate of sales growth remained strong across our existing SKUs (stock keeping units) with our flavoured tonics such as Mediterranean, Elderflower and Aromatic all continuing to perform well, stimulating engagement and interest whilst continuing to attract consumers into the category for the first time.

The On-Trade remains a key focus for the Group and 2018 saw a continuation of the positive performance from 2017. Our broad range of high-quality mixers, brand strength, first mover advantage and long-standing relationships we have with many of our On-Trade partners means we are well positioned to continue to gain market share in 2019 and beyond.

The move to simple long mixed drinks is gaining momentum in the UK with spirits continuing to gain market share at the expense of beer and wine reflecting the evolving drinking habits of consumers.

Looking ahead to 2019, we are now clear market leader in the Off-Trade and would naturally expect a moderation in growth rates compared to those of 2018 but remain excited about the opportunity ahead in the UK.


In December 2017 we announced our intention to take direct control of our operations in the USA. Following a six month transition period, Fever-Tree USA took ownership of our sales, marketing and distribution in the territory on 1st June 2018.  We now have a team of 35 people spanning sales, marketing, finance and supply chain working across the USA, with a regional headquarters in New York.

Notwithstanding the significant operational changes undertaken in 2018, we are encouraged by the performance in the region with sales growth of 21% (24% on a constant currency basis) to £35.8m. Sales remained robust across both channels and the team did an excellent job in managing the transition albeit, as would be expected in any transition, there were some related distribution losses. We stated at the time of our interim results that there was "much transition-related work to do in the second half of 2018" and therefore it was pleasing, despite these challenges, to see our sales growth accelerate slightly in the second half.

As announced at our interim results, the Group signed an exclusive on-trade national distribution agreement with Southern Glazer's Wine and Spirits ("SGWS"), the largest wine and spirits distribution company in North America. Commencing in August 2018 the agreement covers the 29 states in which SGWS and Fever-Tree can operate side by side, with the remaining states covered by a network of regional distributors. As well as providing a strong national route to market, Fever-Tree is now the preferred mixer partner for SGWS, sitting alongside their broad spirits portfolio, which is a further endorsement of our brand's position and potential in the US market. While the partnership is in its early stages, with work ongoing in 2019 to continue to embed the relationship, the progress to date has been encouraging.

While a lot of the focus in the second half of the year has been on engaging directly with key national and local accounts for the first time the period also saw the successful roll out of a number of co-promotional campaigns with spirit partners. This has included the launch of our Citrus Tonic Water in association with Patrón Tequila, the largest premium tequila brand in the USA.  We also launched our Aromatic Tonic Water in the On and Off-Trade with an exclusive listing with Target for an initial period. 

Our ginger range remains a central focus and continues to lead the sales mix in the US. Our commitment to the highest quality ingredients, sourcing three different types of ginger from Africa and Asia, gives us, we believe, a marked point of difference and an excellent opportunity to promote our range further.

Following the operational progress made in 2018 we will continue to build our distribution footprint and key relationships as 2019 progresses. The premium mixer category remains relatively immature in the US but the trend towards spirits premiumisation and the increasing focus on simple long drink mixability gives us confidence in the medium to longer term opportunity for Fever-Tree in the region.


Continental Europe

Sales growth of 24% was achieved across Continental Europe in 2018 (23% on a constant currency basis), delivering revenue for the full year of £55.5m.  It remains our second largest region.

2018 saw the Group continue to make gains across the region in both the On and Off-Trade as well as drive the category growth in many of the key markets in the region.

Alongside our distributors, we have started to work increasingly closely with our retail partners, gaining additional shelf space alongside new national retail listings in markets such as Germany, Denmark, Italy, Ireland and the Nordics. While our whole range has performed well, reflecting the consumer's growing awareness of the brand and the brand's impact on the wider category, our tonic range has been at the forefront of this growth, reflecting the excitement and momentum in the premium gin category. This momentum is being seen across the region, as the move to simple long mixed drinks being enjoyed across different occasions gathers pace and importantly continues to be a focus for the spirits companies.  As we have seen in other major markets, this trend is attracting a broader range of consumers into the category for the first time and is gaining market share from beer.

Our investment into Continental Europe continued during the year with a more than doubling of headcount in the region, with our senior regional management team being complemented by additional hires to work in-country. Not only has this enabled us to gain a more in depth understanding and insight into the different markets but working alongside our European marketing team, it provided us with the opportunity to plan and execute tailored marketing activations.

The Group is establishing an increasingly strong platform in Europe. We have a committed network of distributors, with whom we are working ever more closely. Our ability to activate co-promotional campaigns with key spirits partners across the region is unrivalled amongst our premium competitors and remains a key focus in the year ahead. We are continuing to drive the value and growth in the category for both On and Off-Trade partners and our key European markets are continuing to show good momentum, all of which provides us with confidence as we move into 2019.


The RoW region grew by 48% with revenue of £12.0m and continues to represent plenty of interesting opportunities for the Group. The brand's visibility and awareness amongst consumers continues to increase with the key territories of Australia and Canada as well as South Africa all performing strongly with a growing presence in both the On and Off-Trade and across our flavours.

Our distribution network continues to evolve as we ensure we have the right partners in place in each region to reflect the opportunities ahead with the same trends being seen in our more established markets beginning to emerge in many of these territories.

Operational review

The Group operates a largely outsourced business model which allows for scalability and flexibility alongside the ability to benefit from specific, focused expertise and experience in key areas of the supply chain. This model enables the Group to grow and maintain the highest standards of quality control without the requirement for significant capital investment and allows management to maintain its focus on realising the Group's strategic growth opportunities. 

Manufacturing and distribution are completely outsourced, with the Group responsible for arranging for the delivery of key ingredients, flavours, water, glass, cans and packaging to a manufacturer who then bottles or cans the final product from these component parts.

We currently have six bottling and canning partners across UK and Europe and have made good progress in identifying a bottling partner in the USA in line with our stated strategy to bottle closer to our key regions and territories as appropriate over time.

The Group is closely monitoring the potential impact and risks of the UK's exit from the European Union, including leaving the EU without a dealThe Group has a designated Committee who meet regularly to assess preparedness against the different potential scenarios.  The Group's outsourced business model and increased European bottling footprint provides a degree of operational flexibility which leaves the Group well placed to respond to and mitigate the potential impacts of the different scenarios identified under which the UK's exit from the EU could occur.

The Fever-Tree Team

We had already assembled what I believe to be the very best team of people across the mixed drinks industry, but this strengthened and broadened enormously over 2018.

We are now double the size of this time last year and have a growing band of Fever-Tree employees not just in the UK but also across Europe and further afield, and of course now our very own Team USA.


Innovation continues to be at the heart of the Group's strategy. We are proud of our position as pioneers of the premium mixer and our commitment to providing consumers and customers alike with the highest quality products remains undimmed.

Refreshingly Light

The first half of the year saw the successful launch of the Group's extended Refreshingly Light range of low-calorie mixers. We have always believed in the appeal of a premium, superior tasting low calorie tonic which doesn't compromise on quality and which doesn't include artificial sweeteners.  When we first launched our light tonic with these very credentials over 10 years ago it was the first of its kind, and that pioneering approach has proved to be very successful, with it firmly established as our bestselling SKU at retail in the UK. We are pleased that retailers are recognising this performance and opening their shelf space to this kind of product, hence our ability to offer consumers both our Regular and Refreshingly Light range across our key retailers.  


Our co-promotional activity with spirits partners, both large and small, continued to deepen and develop across different spirits categories as simple long mixed drinks become central to the serve strategies of spirit companies around the world. In September we took our collaboration one step further by developing a product alongside a spirit partner, Patrón Tequila, the leading US premium tequila brand with Fever-Tree Citrus Tonic Water launched in the USA, Spain, Australia, Mexico and the UK. This partnership was born out of our shared values around taste, provenance and versatility. We worked very closely with the team at Patrón to develop the tonic - I myself joined their Master Distiller, Francisco Alcaraz, in Mexico to source the key ingredients of Mexican limes, tangerine and bitter orange, selected to complement the sweet citrus and peppery notes of Patrón.

Limited Editions

We continue to develop limited edition variants; our Cucumber Tonic launched to great success in the summer, whilst the run up to Christmas saw the relaunch of our seasonal favourite Clementine Tonic Water in the UK. Our limited editions continue to drive interest and engagement in the category and our Cucumber variant proved so popular that it has now been added to our permanent range and will be introduced into the on-trade in 2019.


The Group's core formats remain un-changed but we are conscious of ensuring we have the correct flavours and formats for the markets we operate in. To this end, 2018 saw the launch of 250ml cans in Spain as well as the roll-out of 4x200ml variety packs across a number of key markets


We continued to develop our gifting range in 2018 with Fever-Tree crackers and advent calendars launched in the run up to Christmas.  Sold through John Lewis and Waitrose respectively in the UK, they both proved incredibly popular, demonstrating the strength and appeal of the brand beyond the mixer aisle.

Due to the success of "The Art of Mixing" our cocktail book, with over 125 recipes created and mixed by bartenders around the world, which once again finished the year as the leading drinks book in the UK, it has now been made available to purchase in eight international markets as well as being published in three foreign language editions: German, Spanish and Dutch, with a French edition to follow in 2019.

Fever-Tree Championships

2018 saw the inaugural staging of the Fever-Tree Championships, the prestigious grass tennis tournament held in June at The Queen's Club, London. This was our first title sponsorship of a major sporting event and was covered widely across BBC television, radio and online and by Amazon Prime Video with a total television audience of over 20 million across 142 markets, with a peak audience of over two million on BBC watching the return of Andy Murray.

It was a fantastic week and the tournament provided the ideal platform to not only showcase the brand but also to engage with consumers and we are already looking forward to the 2019 Championships. The feedback from the first year of the event from players, spectators and officials alike has been extremely positive with the tournament being voted ATP World Tour Tournament of the Year in its category at the ATP's annual awards as well as recently being shortlisted for event of the year at the forthcoming prestigious BT Sport industry awards.

Market developments

There is clear evidence that drinking habits are evolving, not just in the UK but across many of the markets we operate in, driven by an acceleration in the macro trends that Charles and I identified at the outset of Fever-Tree. Premium spirit consumption is growing ahead of mainstream spirits while consumer interest in quality and craft is prevalent across the beverage sector. Nowhere is this more starkly illustrated than the explosion in craft distilleries. In 2003 there were about 30 such distilleries in the UK and there are now ten times that. The figures for the USA are even more illuminating with the numbers increasing from fewer than 50 when Fever-Tree was established to nearly 2,000 today. 

This interest in and desire for quality and provenance sits alongside a growing interest in health and wellbeing which, when applied to the beverage sector, means consumers are drinking less but also drinking better. Not only this, they are also changing the way in which they want to consume their spirits both in terms of serve and occasion. Consumers are turning away from wanting to drink them neat or over ice; it is no longer compatible with modern lifestyles or the evolution of drinking occasions with late night drinking being replaced by more casual occasions throughout the day which are not suited to drinking neat spirits.

Previously, the much talked about cocktail/mixology culture was seen as a way to satisfy the changing demands of consumers. However, by its very nature it is complex to execute and cannot scale. In the On-trade there are challenges in training, consistency of serve and the ability to make great tasting drinks quickly. In the Off-trade it is even more of a challenge. As research shows, as the complexity of a drink increases the likelihood of people habitually making the drink at home declines rapidly which, simply means, bottles sit undrunk, gathering dust in the cupboard never to be repurchased.

So the alternative, which suffers from none of these limitations, is the simple long mixed drink - the G&T, the Moscow Mule, the Whiskey and Ginger and the Highball, to name a few. The advent of Fever-Tree and the premium mixer has reinvigorated and re-established the quality and enjoyment of these drinks as well as importantly introducing choice and margin back into a category that had been long overlooked and ignored.

By simply combining a premium spirit and a premium mixer together enables the On-Trade to deliver an easy to make yet great tasting drink that can be enjoyed throughout the day, supporting a premium price point and in addition a drink that consumers can easily replicate at home thus driving volume in the Off-Trade 

It is becoming evident that spirits companies, both big and small, are increasingly focused on their long serve strategy for their premium portfolios and Fever-Tree's broad range of high quality mixers, global footprint and brand strength means we are increasingly well positioned to work closely with our spirits partners to drive premium spirits consumption and as a result provide a genuine alternative to the beer and wine occasion.


2018 was a significant year for Fever-Tree. In the UK, we strengthened our position as the leading mixer brand in the Off-Trade. In the US, we successfully established our own operations and the business made real progress in deepening and widening its presence in multiple European regions. As the world's leading premium mixer brand with a strengthening global distribution network we are well set to drive the international opportunity as the move towards the premium long mixed drink continues to gather momentum around the world.

At this early stage in the year, the Group is trading in line with Board expectations and we remain excited about the size of the opportunity that lies ahead.



Tim Warrillow

Chief Executive





Revenue grew by 40% from £170.2m in 2017 to £237.4m, with the Group enjoying growth consistently across flavours, formats, regions and channels, as outlined in the Chief Executive's report.


In 2018, gross margin remained robust but decreased to 51.8% (2017: 53.5%).  As expected, the decrease in percentage gross margin was largely an effect of the implementation of the Soft Drinks Industry Levy in the UK.  From April 2018 the levy was charged to the Group on our regular range of products sold in the UK (our Refreshingly Light range is exempt) and in turn this cost was passed directly through to our UK customers, hence the levy had no impact on the amount of gross profit made by the Group.  The incremental revenue created by the recharge of the levy, generated at nil margin, did, however, have the effect of diluting the overall percentage gross margin made by the Group.  Otherwise, underlying cost increases, most notably glass, also had a corresponding impact on gross margin.  Meanwhile a marginally stronger Euro was offset by a slightly weaker US Dollar, and so foreign exchange movements combined to have minimal impact on gross margin in the year.

Underlying operating expenses are defined as all operating expenditure exclusive of depreciation, amortisation and share based payment charges and the proportion of this expenditure relative to revenue is seen as an effective indicator of changes in underlying operating activity year on year.  In 2018 underlying operating expenses as a proportion of revenue reduced marginally to 18.7% (2017: 19.1%).  Within this, efficiencies gained in central overheads were reinvested in staffing and marketing spend and therefore, in absolute terms, the Group significantly increased investment in staff and marketing expenditure in 2018, especially in the US.  A new Enterprise Resource Planning system was also successfully implemented early in the year, providing the platform to underpin our increasingly global operating base as well as allowing real-time data analytics to help drive operational efficiencies going forward.

Therefore, the reduction in percentage gross margin, which was largely a factor of the recharge of the UK Soft Drinks Industry Levy, was only marginally offset by efficiencies in underlying operating expense and hence the adjusted EBITDA margin for the group reduced to 33.1% (2017: 34.5%), with adjusted EBITDA growing by 34% to £78.6m (2017: £58.7m).  Operating profit increased by 34% to £75.4m (2017: £56.4m) following an increase in share based payment charges to £1.8m (2017: £1.1m) and an increase in depreciation. 


The effective tax rate in 2018 was 18.26% (2017: 19.35%).


The basic earnings per share for the year are 53.38 pence (2017: 39.48 pence) and the diluted earnings per share for the year are 53.19 pence (2017: 39.15 pence).

In order to compare earnings per share year on year, earnings have been adjusted to exclude amortisation and the UK statutory tax rates have been applied (disregarding other tax adjusting items). On this basis, normalised earnings per share for 2018 were 53.40 pence per share and for 2017 were 40.04 pence per share, an increase of 33.4%.

The Board is recommending a final dividend of 10.28 pence per share in respect of 2018 (2017: 7.64 pence per share), which brings the total dividend for 2018 to 14.50 pence per share (2017: 10.65 pence per share).  If approved by shareholders at the AGM on 24 May 2019, it will be paid on 31 May 2019 to shareholders on the register on 26 April 2019.


The Group had net cash of £83.6m at year end, with £89.7m of cash and cash equivalents at the bank offset by £6.1m of bank loans (2017: net cash of £50.9m). The Group had access to a £10m 3-year revolving credit facility provided by Lloyds Bank plc, which expired in January 2019 and was not renewed, resulting in the repayment of the £6.1m bank loan post year end. 


Working capital increased by £18.8m during 2018 to £57.9m. The increase in working capital resulted from an elevation in inventory levels at year end (which allowed for increased flexibility in the early part of 2019 ahead of the UK's potential exit from the EU in 2019).  This increase in inventory levels was partially offset by a significant improvement in the collection of trade debtors in the second half of the year and working capital management will remain an area of focus in 2019.  Operating cash flow remains strong, and consistent with the prior year at 74% of adjusted EBITDA.


Due to the Group's outsourced business model, capital expenditure requirements remain low. The only area of notable capital expenditure in 2018 continued to be investment in crates used to transport reusable bottles within Germany of £0.8m (2017: £0.5m), reflecting the on-going strong growth in that territory. Additional spend of £0.6m was also made towards leasehold improvements in 2018 as part of the head office relocation.


The Group monitors its performance through a number of key indicators. These are formulated at Board meetings and reviewed at both an operational and Board level.

Revenue growth %

Group revenue growth was 40% in 2018 which was ahead of Board expectations (2017: 66%).

Gross margin %

The Group achieved a gross margin of 51.8% in 2018 which was ahead of Board expectations (2017: 53.5%).

Adjusted EBITDA margin %

The Group achieved an adjusted EBITDA margin of 33.1% which was ahead of Board expectations (2017: 34.5%).


Andrew Branchflower

Finance Director




Fevertree Drinks plc

Consolidated statement of profit or loss and other comprehensive income

For the year ended 31 December 2018

















Cost of sales












Gross profit








Administrative expenses












Adjusted EBITDA*












Share based payment charges








Operating profit








Finance costs




Finance income




Finance expense












Profit before tax








Tax expense








Profit for the year




Items that may be reclassified to profit or loss




Foreign currency translation difference of foreign operations




Comprehensive income attributable to equity holders of the parent company








Earnings per share for profit attributable to the owners of the parent during the year




Basic (pence)




Diluted (pence)








* Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share based payment charges and finance costs.






Fevertree Drinks plc

Consolidated statement of financial position

At 31 December 2018









Non-current assets




Property, plant and equipment




Intangible assets




Deferred tax asset




Total non-current assets








Current assets








Trade and other receivables




Derivative financial instruments




Cash and cash equivalents








Total current assets








Total assets








Current liabilities




Trade and other payables




Loans and borrowings




Corporation tax liability




Derivative financial instruments




Total current liabilities








Non-current liabilities




Loans and borrowings




Deferred tax liability




Total non-current liabilities








Total liabilities








Net assets








Equity attributable to equity holders of the company




Share capital




Share premium




Capital redemption reserve




Translation reserve




Retained earnings








Total equity







Fevertree Drinks plc

Consolidated statement of cash flows

For the year ended 31 December 2018







Operating activities



Profit before tax



Finance expense



Finance income



Depreciation of property, plant and equipment



Amortisation of intangible assets



Share based payments









(Increase) in trade and other receivables



(Increase) in inventories



Increase in trade and other payables






Cash generated from operations






Income taxes paid






Net cash flows from operating activities






Investing activities



Purchase of property, plant and equipment



Interest received



Net cash used in investing activities






Financing activities



Interest paid



Issue of shares



Dividends paid



Net cash used in financing activities






Net increase in cash and cash equivalents






Cash and cash equivalents at beginning of period



Effect of movements in exchange rates on cash held



Cash and cash equivalents at end of period








1.   Basis of preparation


The financial information presented in this preliminary announcement has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and as adopted by the EU and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.  The principal accounting policies adopted in the preparation of the financial information in this preliminary announcement are unchanged from those used in the company's financial statements for the year ended 31 December 2017 except for those relating to IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments and are consistent with those that the company has applied in its financial statements for the year ended 31 December 2018.


The financial information set out above does not constitute the company's statutory accounts for 2018 or 2017. Statutory accounts for the years ended 31 December 2018 and 31 December 2017 have been reported on by the Independent Auditor.  The Independent Auditor's Report on the Annual Report and Financial Statements for 2018 and 2017 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.


Statutory accounts for the year ended 31 December 2017 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2018 will be delivered to the Registrar in due course.



2.   Revenue

An analysis of turnover by geographical market is given below:












United Kingdom



United States of America






Rest of the World







3.   Dividends


The final dividend of 10.28 pence per share, bringing the total dividend to 14.50 pence per share, will be paid on 31 May 2018 to the shareholders on the register on 26 April 2019 if approved by the shareholders at the AGM on 24 May 2019.



4.   Earnings per share

Basic earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the financial year of 115,734,845 (2017: 115,256,374). Diluted earnings per ordinary share are calculated with reference to 116,131,195 (2017: 116,236,486) ordinary shares. The effect of the exercise of options on the weighted average number of ordinary shares in issue is 396,350 (2017: 980,112).











Profit used in calculating basic and diluted EPS






Number of shares



Weighted average number of shares for the purpose of

basic earnings per share



Weighted average number of dilutive employee share options outstanding



Weighted average number of shares for the purpose of

diluted earnings per share






Basic earnings per share (pence)






Diluted earnings per share (pence)




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 [email protected] or visit

a d v e r t i s e m e n t