Fevertree Drinks PLC on Tuesday celebrated increased revenue in its latest half year, with ‘standout’ sales in the US, but said its overall profit fell by over 90%.

The London-based drinks producer said pretax profit plummeted down 92% to £1.4 million in the first half of 2023, from £17.9 million the previous year.

Revenue however was up 9.1% over the same periods, to £175.6 million from £160.9 million. UK revenue increased 0.6% to £53.8 million from £53.5 million. Europe revenue increased 6.8% to £56.1 million from £52.3 million, and rest of world revenue fell 36% to £9.6 million from £15.0 million.

US revenue meanwhile increased 40% to £56.1 million from £40.1 million. Fevertree said the ‘standout performance’ was driven by ‘innovation’ and continued distribution gains, and Chief Executive Officer Tim Warrillow said the US brand ‘continues to go from strength to strength, extending our leadership position in the tonic and ginger beer categories’.

‘This reflects how well established the brand is becoming in the world’s largest premium spirit market,’ he added.

Fevertree also increased its interim dividend by 2.0% to 5.74 pence per share from 5.63p the year before.

Cost of sales increased 21% to £121.8 million, administrative expenses increased 17% to £49.9 million, and depreciation more than doubled to £3.3 million. Fevertree incurred an additional £3.3 million in one-off exceptional items.

For the whole of 2023, Fevertree expects between £380 million and £390 million in revenue, with between £30 million and 36 million amid £88 million to £92 million in overheads. However it said its sales performance since June 30 has been impacted by ‘unseasonably poor’ UK weather, although it was ‘making good progress’ in mitigating costs due to inflation.

‘Whilst the vagaries of the British summer weather have impacted sales since period end, contributing to our revised guidance for the full year, the group still expects to deliver good growth in the reminder of 2023,’ commented Warrillow.

‘Looking ahead to 2024, with a stronger global market position than ever before, a broader product portfolio and our confidence in delivering significant margin improvement, the group is well set up for strong, profitable growth going forward.’

Fevertree shares were up 0.7% at 1,314.00p in London on Tuesday.

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