Fever-Tree cheers ‘robust’ sales of mixers despite pandemic
Fever-Tree said sales of its mixers to UK homes have been “robust” despite the coronavirus pandemic.
The tonic maker said its off-trade business, which supplies shops and supermarkets, saw “strong” sales in the build-up to the lockdown.
Sales have continued in recent weeks “as at-home consumption has remained robust” in the face of Covid-19 outbreak.
It said the group had a “solid start to the new financial year”, with sales in January and February in line with the board’s expectations.
However, the company’s on-trade division, which supplies pubs, bars and restaurants, has faced an “extremely challenging period” following shutdowns in key regions.
Co-founder and chief executive Tim Warrillow said: “While we will not be unaffected by the current situation, especially in the on-trade, Fever-Tree is well positioned to manage our way through this situation.
“Financially the group is very secure. We are debt-free, with a strong cash position.
“The wider long-term trend towards premium spirits and premium long mixed drinks continues and we are confident the group will be well placed once the current period of disruption and uncertainty ends.”
The company said it has not furloughed any of its employees due to the pandemic.
The update came as the drinks manufacturer revealed that pre-tax profits slipped 5% to £58.5 million in the year to December 31.
Meanwhile, total revenues increased by 10% to £260.5 million for the year as it was buoyed by strong growth in the US.
Mr Warrillow added: “The group delivered good growth in 2019 despite a more subdued UK market, with double-digit growth across our international regions.
“We strengthened our global leadership position and in doing so continued to build a strong platform to deliver long-term, sustainable growth.”
Shares in the company jumped 13.6% to 1,550p in early trading on Wednesday.