UK-based mixer brand sees strong consumer demand despite supply chain issues
- Fever-Tree reports a 6% revenue growth in the UK with a year-on-year increase of 73% in H1 2022
- EBITDA margin expected to be around 14% due to logistics and cost headwinds impacting business
- Revenue guidance range maintained at £355m to £365m for the full year
- Off-Trade sales declined by 21% in H1 2021 lockdown period
- Gross margin expected to be between 33% and 35% due to logistics, sales mix, and FX hedging impacts
- CEO Tim Warrillow says the brand is focused on mitigating transitory headwinds and satisfying demand in growth regions
Fever-Tree, the UK-based premium tonic water maker, has reported a 6% revenue growth in the first half of 2022 with a year-on-year increase of 73%. However, the company anticipates gross margins to be around 37% and an EBITDA margin of about 14% due to logistics and cost headwinds that have worsened in recent months. These challenges are expected to continue affecting the business during the second half, resulting in a revised EBITDA guidance between £37.5m and £45m for the full year. Despite this, Fever-Tree’s On-Trade sales showed signs of recovery, maintaining its revenue guidance range at £355m to £365m. The company also expects a 400bps to 600bps margin dilution due to the challenging environment and limited sales mix and FX hedging impacts. CEO Tim Warrillow stated that they are closely working with suppliers in their supply chain to mitigate these transitory headwinds while satisfying strong demand in growth regions.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Fever-Tree’s financial performance and expectations for the first half of the year, including revenue growth, EBITDA margins, and logistics challenges. It also includes quotes from the CEO that support the claims made in the article.
Noise Level: 3
Noise Justification: The article provides relevant information about Fever-Tree’s financial performance and its CEO’s perspective on the challenges faced by the company due to logistics and cost headwinds. It also mentions the brand’s revenue growth and initiatives to mitigate these issues. However, it could benefit from more in-depth analysis of the long-term implications and potential solutions for similar situations in other businesses.
Financial Relevance: Yes
Financial Markets Impacted: Fever-Tree’s stock and related companies in the beverage industry
Financial Rating Justification: The article discusses Fever-Tree’s financial performance, including its gross margins, EBITDA margin, revenue guidance, and impact of logistics and cost headwinds. This information is relevant to investors and can affect the company’s stock price as well as other companies in the beverage industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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