By Michael Susin
Fevertree Drinks, the London-based mixer-maker, has reported a significant drop in pretax profit for the first half of the year, citing increased sales cost and other expenses. However, the company has announced an increase in its dividend payout.
In the six-month period, Fevertree Drinks recorded a pretax profit of £1.4 million ($1.8 million), a considerable decline from the previous year’s £17.6 million.
Despite the decline in profit, the company saw a 9% increase in revenue, reaching £175.6 million. Notably, the U.S. market experienced a remarkable 40% growth and has become the company’s largest revenue-contributing region.
Fevertree Drinks also revealed that its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin stood at 5.8%, which reflects a lower gross margin when exceptional and one-off items are excluded.
Furthermore, the company recommended an interim dividend of 5.74 pence per share, indicating a 2% improvement compared to the previous year.
Looking ahead, Fevertree Drinks aims to achieve full-year revenue between £380 million and £390 million. The company acknowledges that the adverse weather conditions in the U.K. during the crucial summer period will impact its financial performance.
Despite this challenge, the gross margin guidance remains steady, ranging from 31% to 33%. Additionally, the company anticipates that EBITDA will range from approximately £30 million to £36 million.