Premium mixer brand Fever-Tree reiterated its financial guidance today after record trading in the UK helped it deliver a robust start to the year.
In an update ahead of its AGM, the company said trading had been in line with the expectations set out in its last annual results.
In the UK, the Fever-Tree recorded its highest-ever value share in the on-trade during its first quarter trading period, around 6% higher than its share in the same quarter of 2020. The company stated that it expects its off-trade sales to build momentum as the year progresses and that it is trading in line with expectations.
Fever-Tree noted that it was looking forward to the key summer trading period, with multiple activations planned across its portfolio and “encouraging performance” from its new Adult Soft range.
The US business had a strong start to the year in both the on and off-trade, with value and volume growth across all categories, and particularly robust growth in flavoured sparkling and club soda drinks.
In Europe, Fever-Tree said it continues to gain value share of the premium mixer category at retail, with particularly encouraging growth in Italy and France.
In Rest of World division, the group stated that it continues to make good sales and operational progress across regions.
Looking ahead, the company said: “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.
“Whilst inflationary cost pressures remain elevated, the group continues to be focused on delivering initiatives to mitigate these costs and expects 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.”
