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Profits at Fever-Tree more than doubled in 2016, after an “exceptional” performance in its key British market helped the maker of posh soft drinks boost both its revenues and margins.
Pre-tax profits increased 104 per cent to £34.3m on a 73 per cent rise in revenues, to £102.2m. The results were in line with analyst forecasts after the company upgraded its targets three times over the last year.
Fever-Tree said it has made an “encouraging start” to the new year, and is looking to take a larger chunk of the wider mixer market by further expanding beyond its focus on mixers for gin. The group already sells mixers such as Sicilian lemonade and Madagascan cola alongside its flagship tonic waters.
Fever-Tree’s premium offering has benefited from rising numbers of adults cutting back on alcohol, and a shift toward artisanal spirits among those who are still drinking.
The company also announced today that co-founder Charles Rolls will move from an executive deputy chairman to a non-executive role after the company’s annual general meeting in May.
Shares in the group have increased more than 700 per cent since the company’s IPO in 2014.
Tim Warrillow, Fever-Tree chief executive, said:
2016 has been another exceptional year of growth for Fever-Tree, with strong results achieved across all regions, channels and flavours, emphasising the global appeal of the Fever-Tree brand.