With all the doom and gloom surrounding Brexit it’s nice to come across a great British success story in the form of millennial favourite Fevertree (LON:FEVR).
It looks set to be another successful year for this small British company, that has managed to turn itself into one of the leading exporters and producers of carbonated mixers.
This morning it reported reported full year revenues are set to rise 39% to £236m driven by strong growth in the UK and US. Consensus was for revenues to come in £230m. UK revenues rose 52%, sending the shares up sharply to six month highs.
The growing popularity of gin as the UK tipple of choice is helping drive sales here with the Wine and Spirit Trade Association reporting that 66m bottles of gin were sold in 2018, a rise of 41%.
The deal signed in the middle of last year with US-based SouthernGlazers Wine and Spirits helped push H2 revenue up by 21% compared to 2017.
Operating in over 70 countries revenues are also set to rise 48% outside of the US, Europe and the UK.
Since 2016, when revenues edged above the £100m mark the company has gone from strength to strength, with today’s numbers showing revenues set to come in at £236m, with consensus forecasts suggesting further gains to £275m for 2019. The shares have slipped sharply since the record peaks in September, but they are still above where they were a year ago when there was speculation that Unilever (LON:ULVR) might be tempted to look at making a bid.
While that didn’t pan out at the time that’s not to say speculation might not return if the revenue picture continues to improve at the same pace that it has in the last three years.
Now where did I put that bottle of gin I got for Secret Santa?
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