That’s the tonic! Board shakeup at Fever Tree after revenue spike
Upmarket tonic maker Fever Tree is confident that a summer full of G&Ts will help continue to strengthen its balance sheet, as the group forecast revenues to reach upwards of £390m this year.
Ahead of its AGM today, the drinks maker told investors that Fever-Tree recorded its highest ever value share in the On-Trade during a first quarter trading period – circa 6 per cent, as it pushed out a range of new cocktail mixers to consumers.
Moreover, across its other markets in the US and Europe trade also appears to be doing well as its portfolio of “lighter summer drinks” performs well with consumers.
“We are confident that the brand will continue to deliver strong revenue growth as we start our key summer trading period and therefore reiterate our top-line guidance range as set out in March at £390m to £405m,” Fever Tree said.
It comes as the group announced earlier this year that it was hiking the price of its products due to high inflationary pressures and production costs – as revenues fell 2.0 per cent in the UK to £116.2m from £118.3m the prior year.
However, Fever Tree said today that while inflationary cost pressures remain elevated, it continues to be focused on delivering “initiatives to mitigate these costs”.
The note continued:”[We] expect to drive margin improvements as we progress through the year, which means we’re on-track to deliver EBITDA in-line with our guidance range of £36m to £42m for 2023.”
The firm also announced a change to the board, with Camelot co-CEO Clare Swindell to join the board.
Coline McConville will step down.