TIDMFEVR
RNS Number : 0894U
Fevertree Drinks PLC
27 July 2015
27(th) July 2015
Fevertree Drinks plc ("Fever-Tree")
Interim Results
Fever-Tree, the world's leading supplier of premium carbonated
mixers for alcoholic spirits by retail sales value, today announces
its Interim Results for the period ended 30 June 2015.
Financial Highlights:
-- Revenue up 62% to GBP24.1m (H1 2014: GBP14.9m)
-- Gross margin of 50.5% (H1 2014: 51.1%)
-- Adjusted EBITDA(1) up 68% to GBP7.2m (H1 2014: GBP4.3m)
-- Strong balance sheet with net cash at period end of GBP7.9m
-- Diluted EPS of 4.44 pence
-- Interim dividend of 0.78 pence per share
Operational Highlights:
-- New UK Off-Trade listing in Morrisons
-- Continued strong growth in Ginger Beer sales in USA
-- Launch of the new 150ml can format
Tim Warrillow, CEO of Fever-Tree said:
"We are delighted to report that the Group's strong performance
throughout 2014 has continued into the first half of 2015. We
achieved a 62% increase in revenue with all four of our territories
continuing to perform strongly and the results were underpinned by
solidly maintained margins and a strong balance sheet.
The Group remains ideally positioned to benefit from the ongoing
global trend to greater premiumisation and look to the future with
confidence as we continue to deepen our penetration in our existing
markets whilst exploring new market opportunities."
(1) Adjusted EBITDA is earnings before interest, tax,
depreciation, amortisation, exceptional items and finance costs
For further information:
c/o FTI +44 (0)20 3727
Fevertree Drinks plc 1000
Tim Warrillow, Co-founder and CEO
Charles Rolls, Co-founder and Executive
Deputy Chairman
Andy Branchflower, Finance Director
FTI Consulting - Financial PR +44 (0)20 3727 1000
Jonathon Brill fever-tree@fticonsulting.com
Oliver Winters
Tom Hufton
Investec Bank plc - Nominated Adviser
and Broker +44 (0)20 7597 4000
Garry Levin
Duncan Williamson
Matt Lewis
David Anderson
Notes to Editors:
Fever-Tree is the world's leading supplier of premium carbonated
mixers for alcoholic spirits by retail sales value, with
distribution to approximately 50 countries worldwide. Based in the
UK, the brand was launched in 2005 to provide high quality mixers
which could cater to the growing demand for premium spirits, in
particular gin, but also increasingly for vodka, rum and whisky.
The Company now sells a range of carbonated mixers to hotels,
restaurants, bars and cafes ("On Trade") as well as selected retail
outlets ("Off Trade"). Approximately 70 per cent of the Group's
sales were derived from outside of the UK in financial year 2014,
with key overseas markets in the US and Europe.
Chief Executive's report
I am delighted to report that the Group's strong performance in
2014 has continued in the first half of 2015. During the period we
achieved revenue of GBP24.1m, representing growth of 62% on the
first half of 2014.
Despite some net forex headwinds, our gross profit margin has
been maintained at 50.5% (2014: 51.1%) and the Group achieved an
adjusted EBITDA of GBP7.2m in the first half of the year,
generating diluted earnings per share of 4.44p. We begin the second
half of 2015 with a strong balance sheet and net cash of
GBP7.9m.
Results
Half year Half year
ended 30 June ended 30 June
2015 2014 Movement
GBPm GBPm %
------------------ --------------- --------------- ---------
Revenue 24.1 14.9 62%
Gross Profit 12.1 7.6 60%
Gross Profit % 50.5% 51.1%
Adjusted EBITDA 7.2 4.3 68%
Adjusted EBITDA
% 29.9% 28.9%
Diluted EPS 4.44 16.79(2)
Interim Dividend 0.78p n/a
(2) Calculation based on pre-IPO structure, see notes to the
financials
Territory review
Revenue by territory
Half year Half year
ended 30 June ended 30 June Share of
2015 2014 Movement revenue
GBPm GBPm % %
-------- --------------- --------------- --------- ---------
UK 7.6 4.7 62% 32%
USA 5.8 3.5 69% 24%
Europe 9.4 5.8 61% 39%
RoW 1.3 0.9 42% 5%
Total 24.1 14.9 62% 100%
UK
In our largest market, the Group achieved sales growth of 62%,
with strong performance in both the On-Trade and Off-Trade,
although this result was accentuated by certain customers building
inventory in June in advance of the summer season. In the first
half of 2015 we increased investment in the On-Trade sales team and
achieved some notable new listings. In the Off-Trade we also gained
a listing with Morrisons. Our new tonic and naturally light tonic
in 150ml can format was launched in Sainsbury's at the very end of
June, in Waitrose in July and was soon followed by an exclusive
listing in British Airways First Class and Club World cabins as
well as lounges throughout the UK.
USA
The strong momentum from 2014 has continued, with revenue growth
of 69% in the period, which represented growth of 54% when adjusted
for the strengthening US dollar. The "Moscow Mule" trend continued
to drive growth in Ginger Beer sales in the first half of the year
although growth across the Tonic flavours is also notable
reflecting the rise in popularity of a premium gin and tonic in the
region.
Europe
Revenue growth of 61% was achieved in the period, which
represented growth of 77% when adjusted for the weakening Euro.
Whilst this strong result was aided by certain importers taking
large orders in June in advance of the summer season, growth
continues to be underpinned by the strong performance seen in 2014
across many western European countries which has continued into the
first half of 2015.
RoW
Sales to countries within the RoW region have grown by 42% and
the Group has added dedicated resource to take advantage of
opportunities in Asia Pacific and Latin America.
Financial
Gross margin and operating expenses
Gross margin of 50.5% in the period represents a decrease from
the 51.1% achieved in the first half of 2014. The main driver of
this decrease was the weakening Euro, although this has been
partially offset by the impact of the strengthening Dollar, as well
as product cost and logistics efficiencies.
Underlying operating expenses(1) decreased as a proportion of
revenue to 20.4% during the period (2014: 22.3%), which has
improved the EBITDA margin to 29.9% (2014: 28.9%). For the current
period underlying operating expenses include an incremental GBP0.4m
unrealised gain made on outstanding forward exchange contracts at
June 2015. Disregarding this GBP0.4m unrealised gain, the level of
other underlying operating expenses is comparable to the prior
period at 22.2% of revenue (2014: 22.3%).
Cash position and working capital
The Group had net cash of GBP7.9m at period end, with GBP14.0m
of cash at the bank offset by GBP6.1m of bank loans. Adjusted
operating cash flow in the period is strong at 83% of adjusted
EBITDA, albeit this conversion rate is influenced by seasonality
and is expected to return to levels seen historically as we
progress through 2015.
Dividend
Reflecting the Board's continued confidence in the outlook, the
Directors are pleased to declare an interim dividend of 0.78 pence
per share. The dividend will be paid on 4 September 2015, to
shareholders on the register on 14 August 2015.
Outlook
We are encouraged by our performance in the first half of the
year and the Board remains positive about the outlook for 2015.
__________________ (1) Underlying operating expenses are defined
as administrative expenses less LTIP charges, depreciation,
amortisation and exceptional items
Tim Warrillow
Chief Executive
Consolidated statement of comprehensive income
For the six months ended 30 June 2015
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2015 2014 2014
Note GBP GBP GBP
Revenue 2 24,069,646 14,868,371 34,691,034
Cost of sales (11,921,618) (7,264,829) (17,028,408)
Gross profit 12,148,028 7,603,542 17,662,626
Administrative expenses (5,366,114) (3,862,770) (9,574,793)
Adjusted EBITDA* 7,196,899 4,291,027 10,005,110
Depreciation (54,985) (35,481) (84,263)
Amortisation (360,000) (357,041) (717,041)
Exceptional items - (157,733) (1,115,973)
------------------------------------ ----- ------------- ------------ -------------
Operating profit 6,781,914 3,740,772 8,087,833
Finance costs
Finance income 5,023 5,167 9,222
Finance expense (193,767) (2,619,209) (5,575,813)
Profit before tax 6,593,170 1,126,730 2,521,242
Tax expense (1,435,758) (471,615) (1,224,831)
Profit for the year/period and
comprehensive income attributable
to equity holders of the parent
company 5,157,412 655,115 1,296,411
Earnings per share for profit
attributable to the owners of
the parent during the year
Basic (pence) 4 4.48 16.79 1.54
Diluted (pence) 4 4.44 16.79 1.54
* Adjusted EBITDA is earnings before interest, tax,
depreciation, amortisation, exceptional items and finance costs
Consolidated statement of financial position
30 June 2015
30 June 30 June 31 December
2015 2014 2014
GBP GBP GBP
Non-current assets
Property, plant and equipment 411,164 330,369 351,699
Intangible assets 44,210,655 44,930,655 44,570,655
Total non-current assets 44,621,819 45,261,024 44,922,354
----------- ------------ ------------
Current assets
Inventories 5,391,968 3,310,848 4,346,168
Trade and other receivables 10,764,817 7,586,737 8,390,202
Derivative financial instruments 458,054 42,124 11,051
Cash and cash equivalents 13,975,803 3,936,707 9,583,313
Total current assets 30,590,642 14,876,416 22,330,734
----------- ------------ ------------
Total assets 75,212,461 60,137,440 67,253,088
----------- ------------ ------------
Current liabilities
Trade and other payables 6,983,416 3,932,790 4,387,498
Derivatives - 495 -
Loans and borrowings 634,784 291,033 364,445
Corporation tax liability 1,413,894 782,128 658,604
----------- ------------ ------------
Total current liabilities 9,032,094 5,006,446 5,410,547
----------- ------------ ------------
Non-current liabilities
Loans and borrowings 5,461,339 53,365,413 5,895,828
Deferred tax liability 2,607,661 2,584,218 2,679,661
Total non-current liabilities 8,069,000 55,949,631 8,575,489
----------- ------------ ------------
Total liabilities 17,101,094 60,956,077 13,986,036
----------- ------------ ------------
Net assets / (liabilities) 58,111,367 (818,637) 53,267,052
----------- ------------ ------------
Equity attributable to equity
holders of the company
Share capital 288,102 281,321 288,102
Share premium 53,521,386 186,796 53,521,386
Capital Redemption Reserve 93,189 - 93,189
Retained earnings 4,208,690 (1,286,754) (635,625)
Total equity 58,111,367 (818,637) 53,267,052
----------- ------------ ------------
Consolidated statement of cash flows
For the six months ended 30 June 2015
Period ended Period ended Year ended
30 June 30 June 31 December
2015 2014 2014
GBP GBP
Operating activities
Profit before tax 6,593,170 1,126,730 2,521,242
Finance expense 193,767 2,619,209 5,575,813
Finance income (5,023) (5,167) (9,222)
Depreciation of property, plant and
equipment 54,985 35,481 84,263
Amortisation of intangible assets 360,000 357,041 717,041
Share based payments 32,626 - 9,833
7,229,525 4,133,294 8,898,970
(Increase)/Decrease in trade and other
receivables (2,829,534) (1,590,352) (2,401,730)
(Increase)/Decrease in inventories (1,045,800) (769,075) (1,804,395)
Increase/(Decrease) in trade and other
payables 2,595,918 1,031,312 1,482,143
------------- ------------- --------------
(1,279,416) (1,328,115) (2,723,982)
------------------------------------------- ------------- ------------- --------------
Cash generated from operations before
exceptional items 5,950,109 2,962,912 7,290,961
Exceptional items - (157,733) (1,115,973)
------------------------------------------- ------------- ------------- --------------
Cash generated from operations 5,950,109 2,805,179 6,174,988
Income taxes paid (752,469) (538,825) (1,320,121)
------------- ------------- --------------
Net cash flows from operating activities 5,197,640 2,266,354 4,854,867
------------- ------------- --------------
Investing activities
Purchase of property, plant and equipment (114,450) (197,610) (267,723)
------------- ------------- --------------
Net cash used in investing activities (114,450) (197,610) (267,723)
------------- ------------- --------------
Financing activities
Interest (paid) (152,893) (1,315,223) (1,459,545)
Interest received 7,916 5,168 9,222
Loans repaid (200,000) (175,000) (350,000)
Loan note repaid - - (49,991,087)
Shares issued (net of fees allocated
against equity) - - 53,434,561
Dividends paid (345,723) - -
------------- ------------- --------------
Net cash used in financing activities (690,700) (1,485,055) 1,643,151
------------- ------------- --------------
Net increase in cash and cash equivalents 4,392,490 583,689 6,230,295
Cash and cash equivalents at beginning
of period 9,583,313 3,353,018 3,353,018
------------- ------------- --------------
Cash and cash equivalents at end of
period 13,975,803 3,936,707 9,583,313
------------- ------------- --------------
Notes to the consolidated financial statements
For the six months ended 30 June 2015
1. Basis for preparation
The interim financial statements have been prepared in
accordance with the recognition and measurement requirements of
International Financial Reporting Standards (IFRS) and IFRIC
interpretations issued by the International Accounting Standards
Board (IASB) adopted by the European Union.
The accounts have been prepared in accordance with accounting
policies that are consistent with the December 2014 Report and
Accounts and that are expected to be applied in the Report and
Accounts of the year ended 31 December 2015. There are new or
revised standards or interpretations that apply to the period
beginning 1 January 2015 but they do not have a material effect on
the financial statements for the period ended 30 June 2015.
This report is not prepared in accordance with IAS 34, which is
not mandatory. The financial information does not constitute
statutory accounts within the meaning of section 435 of the
Companies Act 2006. Statutory accounts for Fevertree Drinks Plc for
the year ended 31 December 2014 have been delivered to the
Registrar of Companies. The auditors' report on those accounts was
unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under Section 498 (2) or
(3) of the Companies Act 2006.
2. Revenue
An analysis of turnover by geographical market is given
below:
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2015 2014 2014
GBP GBP GBP
United Kingdom 7,590,177 4,691,241 11,138,177
United States of America 5,809,368 3,446,272 8,286,535
Europe 9,408,768 5,844,416 13,438,075
Rest of the World 1,261,333 886,442 1,828,247
24,069,646 14,868,371 34,691,034
=========== =========== ============
3. Dividends
The interim dividend of 0.78p will be paid on 4 September 2015
to shareholders on the register on 14 August 2015.
4. Earnings Per Share
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2015 2014 2014
GBP GBP GBP
Profit
Profit used in calculating basic and
diluted EPS 5,157,412 655,115 1,296,411
Number of shares
Weighted average number of shares for
the purpose of
basic earnings per share 115,240,896 3,900,979 83,934,200
Weighted average number of employee
share options outstanding 842,531 - 133,882
------------ ------------ ------------
Weighted average number of shares for
the purpose of
diluted earnings per share 116,083,427 3,900,979 84,068,082
------------ ------------ ------------
Basic earnings/(loss) per share (pence) 4.48 16.79 1.54
------------ ------------ ------------
Diluted earnings/(loss) per share (pence) 4.44 16.79 1.54
------------ ------------ ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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