Red Bull revenue take flight after multipacks success
Revenue at energy drink giant Red Bull jumped by almost £90m in 2023 after more people in the UK picked up its multipacks.
The London-based division of the Austrian giant has reported a revenue of £594.1m for its latest financial year, up from the £508.6m it posted in 2022.
Newly-filed accounts with Companies House also show its pre-tax profit for the 12 months grew from £42.8m to £49.1m over the same period.
The amount for Red Bull energy drinks it sold in the UK and the Republic of Ireland rose by 8.7 per cent to 877.2m.
As a result of its improved financial performance, Red Bull increased its dividend from £30m to £36m.
Red Bull’s off premise channel, which mainly includes retailers and wholesalers, rose by 10.4 per cent, adding 71.4m servings.
The growth saw the company achieved a market share of 35.4 per cent, up 0.7 per cent while it also outgrew the category in both volume and value performance.
Red Bull said that its growth was mainly driven by increasing distribution throughout the UK, adding over 75,000 new points of distribution in the marketplace.
It also upped its volume rate of sale by 9.2 per cent through its store strategy and brand campaigns.
Multipacks also proved popular, rising by an extra 26m units and became 22 per cent of its portfolio mix, up from 13 per cent before the Covid-19 pandemic.
Red Bull’s on premise share peaked at 76.6 per cent in its latest financial year, with foodservice adding 10 per cent growth.
However, Red Bull added: “Competition will remain strong within the energy drink category and mergers, acquisitions and alliances involving our main customers, as well as increasing cost pressure due to [the] regulatory environment.”
Red Bull success mirrored on track
The results for the energy drink business come after Red Bull’s F1 team posted a turnover of £307.4m for 2023, up from £278m.
The team, which is based in Milton Keynes, also saw its pre-tax profit grow from £2.2m to £3m over the same period.
During the season, Red Bull had a 14-race winning streak and won 95.45 per cent of races overall.
It secured its sixth constructers’ title with six races remaining, with Max Verstappen being crowned drivers champion again.
Despite its improved financial performance, the team did not issue a dividend for the year, having paid out £6.5m in 2022.