Tonic and mixer maker Fever-Tree confirmed its double-digit income rise for the primary half of this yr, however famous that logistics prices within the US would proceed to impression the agency in 2022.
In July 2021, Fever-Tree reported its financial results for the six months ending 30 June 2021. The corporate noticed complete income develop by 39% on a continuing forex foundation, in contrast with the earlier yr.
Gross sales throughout the first half of the yr reached £141.8 million (US$192.9m) – up from £104.2m (US$141.8m) in 2020.
In its interim outcomes announcement, printed on 15 September, Fever-Tree confirmed the rise in gross sales for H1 and addressed provide chain points.
The corporate famous ‘sturdy’ progress throughout all of its key markets, with off-trade gross sales remaining above pre-Covid ranges.
Fever-Tree mentioned its on-trade gross sales carried out nicely as markets began to get well throughout the second quarter of 2021.
Tim Warrilow, CEO of Fever-Tree, famous that the corporate witnessed an “glorious gross sales efficiency” for H1.
He mentioned: “Our ambition and confidence within the international alternative continues to develop and now we have been inspired by the preliminary re-opening of the on-trade, the continuing energy of the off-trade with gross sales exceeding pre-Covid ranges throughout all our areas, in addition to the response to our new product launches, all of which is a testomony to our rising model energy, rising presence, advertising and marketing investments, and relationships throughout the trade.”
Provide chain disruption
The corporate mentioned its gross margin had been hit by an increase in logistics prices, together with within the UK, the place costs have elevated on account of the scarcity of HGV lorry drivers. The key driver of this, based on Fever-Tree, is that transport to the US has grow to be dearer on account of freight charges and better storage prices.
As such, the agency determined to construct stock within the US to mitigate the impression. The corporate has scaled up its glass bottling capabilities within the US to full manufacturing on the West Coast. East Coast bottling will probably be commissioned throughout the second half of subsequent yr.
Fever-Tree expects disruption and elevated logistics prices to proceed to impression the agency for the remainder of 2021 and into the next yr.
Moreover, the mixer maker revealed its ambition to grow to be carbon impartial throughout all its areas by 2025. All of its expressions bought within the UK are actually carbon impartial, which means it’s the first mixer model to achieve this milestone.
Fever-Tree will perform a full lifecycle evaluation of its greenhouse fuel emissions throughout its vary, with three targets set to cut back emissions.
Wanting forward, the agency confirmed it expects income to achieve £295m-£304m (US$402m-US$414m) for the total yr.
The corporate mentioned in its steering for full-year 2021: “We stay very assured of continued sturdy gross sales momentum throughout our areas and can proceed to spend money on the enterprise to capitalise on the longer-term structural progress alternative forward of us.”