Fevertree Drinks PLC has reported its FY23 preliminary results to 31 December 2023, highlighting good sales and operational progress resulting in a doubling of EBITDA in the second half of 2023. Despite macroeconomic headwinds, the company achieved a 6% revenue growth, with the US emerging as its largest revenue-generating region, experiencing a strong 22% growth. The brand continued to strengthen its position globally, with market share gains in all key markets, including the UK, US, Europe, and the Rest of the World. Innovation remains a crucial part of the company's growth, with non-Tonic products comprising approximately 40% of global sales in 2023, up from 25% in 2019. The company is comfortable with consensus expectations of around 10% growth for the Fever-Tree brand in the year ahead, with a continuation of strong double-digit growth in the US and a return to growth in the UK and Rest of the World. The company also expects to deliver a c.600bps gross margin improvement during 2024 and an Adjusted EBITDA margin in line with previous guidance of around 15%.
The company's Co-Founder and CEO, Tim Warrillow, expressed confidence in the company's strong operational position and excellent platform for strong profitable growth going forward. The company's financial and operational performance over the last 12 months has been strong, despite inflationary cost pressures, adverse weather, and subdued consumer sentiment, especially across Europe. The brand has been recognized as the number one premium mixer brand globally, outperforming competitors in all key markets. The company was voted "Number One Top Selling Mixer" and "Number One Top Trending Mixer" for the tenth year running by Drinks International, showcasing its leading position in the industry.
In conclusion, Fevertree Drinks PLC's FY23 preliminary results reflect a resilient performance, with strong sales momentum, market share gains, and a focus on innovation driving its growth. The company's strategic highlights, financial outlook, and market leadership position demonstrate its resilience and potential for continued success in the future.