Fevertree Drinks plc
FY21 Preliminary Results to 31 December 2021
FY21 Highlights
- Fever-Tree delivered revenue growth of 23% (26% at constant currency), growing strongly across all markets, extending its position as the leading global premium mixer brand
- The Off-Trade performed well, and remained ahead of 2019 levels, even as the On-Trade re-opened, with consumers increasingly enjoying long mixed drinks at home and premiumising their serves
- Fever-Tree maintained its number one position in the UK retail mixer category, with 39.8% value share [1]
- Significant Off-Trade momentum in the US, with the brand growing to become the number one Ginger Beer brand at retail in the US, as well as finishing the year as the number one Tonic brand at retail[2]
- Good performance across Fever-Tree's European markets, driven by strong Off-Trade sales, a positive return of the On-Trade and importer restocking as the region recovered from On-Trade restrictions
- Unprecedented global supply chain disruption impacted our gross margin, with a reduction in Adjusted EBITDA margin to 20.2%
- Significant progress and investment across our sustainability initiatives with all our products sold in the UK now carbon neutral
- The Group continued to invest for long-term growth:
o Successful launches of the new Premium Soda range in the UK On-Trade, Sparkling Lime & Yuzu in the US, and Rhubarb & Raspberry Tonic across Europe after its successful launch in the UK
o Focused on a range of marketing opportunities, including TV adverts in the UK and Spain, pop-up bars in London, New York and Texas, prominent retail displays, and multi-channel co-promotions
o Began commissioning of our second US bottling line, on the East Coast, which will ramp up to full production during H1 FY22
Financial highlights
|
£m |
FY21 |
FY20 |
Change |
|
Revenue |
|
|
|
|
UK |
118.3 |
103.3 |
15% |
|
US |
77.9 |
58.5 |
33% |
|
Europe (Fever-Tree brand revenue) |
78.6 |
59.0 |
33% |
|
Europe total revenue |
88.2 |
65.3 |
35% |
|
ROW |
26.7 |
25.0 |
6% |
|
Total |
311.1 |
252.1 |
23% |
|
|
|
|
|
|
Gross profit |
130.9 |
116.3 |
12% |
|
Gross margin |
42.1% |
46.2% |
(410)bps |
|
|
|
|
|
|
Adjusted EBITDA[3] |
63.0 |
57.0 |
11% |
|
Adjusted EBITDA margin |
20.2% |
22.6% |
(240)bps |
|
|
|
|
|
|
Diluted EPS (pence per share) |
38.19 |
35.76 |
7% |
|
|
|
|
|
|
Dividend (pence per share) |
15.99 |
15.68 |
2% |
|
|
|
|
|
|
Net cash |
166.2 |
143.1 |
16% |
- Net cash increased to £166 million; growth of 16% year-on-year.
- Proposed full year dividend of 15.99 pence per share, an increase of 2% year-on-year,
- Recommending a special dividend of 42.90 pence per share, reflecting our financial strength, ongoing cash generation, as well as our confidence in the continued execution of our strategy.
FY22 Guidance
Fever-Tree is performing well in the Off-Trade across our key regions, gaining share within the mixer categories and driving growth of the premium segment. This is supported by the increased popularity of drinking premium long mixed drinks at home, which both retailers and spirits companies are investing behind. As a result, we expect Off-Trade demand to remain at higher levels than pre-pandemic and are well placed to benefit from this sustained shift in consumer behaviour. The On-Trade has continued to recover since the start of the year, and we look forward to a full year of trading through this channel for the first time in over two years. Consequently, we expect to deliver revenue growth of between c.14%-17%, to £355 million – £365 million in FY22.
As highlighted in January, there remains a global backdrop of inflationary pressures against which we are employing a range of mitigating actions. However, commodity prices have increased dramatically in recent weeks because of the terrible events unfolding in Ukraine and this has created significant uncertainty in relation to input costs. As a result, we now expect to deliver an EBITDA range of between £63 million and £66 million for FY22.
Notwithstanding these near-term cost headwinds, the long-term opportunity looks even more significant than it did a few years ago following the acceleration of supportive consumer trends, and the Group is using its strong balance sheet to remain focused on realising this opportunity with our fantastic team and unrivalled global brand strength.
Tim Warrillow, Co-Founder and CEO of Fever-Tree, commented
” Our fantastic team has delivered a great set of results with impressive revenue growth in all our key markets during another year of uncertainty and disruption. Our growing momentum reflects the brand's increasing presence and popularity around the world, nowhere more so than the US where we finished the year as the No.1 Tonic Water brand by value at US retail. This is a significant achievement and matches the position we have held in the UK, as well as several European markets, for a number of years.
Whilst the tragic situation in Ukraine has resulted in significant uncertainty in relation to our input costs in the short term, the long-term global opportunity for Fever-Tree remains substantial and we are as confident as ever in the brand's ability to capitalise on this. We are excited by the growing interest in the long-mixed drink category from retailers, spirits brands and consumers, especially given the increasing focus on premium segments, which places Fever-Tree, as the largest global premium mixer brand, at the centre of these trends. “
There will be live audio webcast on Wednesday 16th March 2022 at 10:00am GMT. The webcast can be accessed via:
https://www.sunipapictures.com/fever-tree/