Fevertree Drinks PLC on Thursday said it achieved single-digit sales growth in 2023, shaking off tricky market conditions.

The London-based maker of carbonated mixers for drinks said revenue in 2023 grew 5.8% on-year to £364.4 million from £344.3 million.

It expects to report adjusted earnings before interest, tax, depreciation and amortisation of around £30 million, in line with guidance, but down 24% from £39.7 million in 2022.

‘Despite macroeconomic headwinds, the brand continues to make good progress, particularly in the US, and has delivered market share growth across our key markets,’ Fevertree said.

Fevertree said UK revenue topped expectations last year, helped by strong on-trade sales in the fourth-quarter. On-trade refers to venues such as bars and restaurants, contrasting with off-trade which includes grocers.

Looking to 2024, Fevertree expects revenue to rise by 8%, as it predicts a £7 million hit from a ‘refocusing’ of its portfolio in Germany.

It backed its 2024 adjusted earnings before interest, tax, depreciation and amortisation margin outlook of 15%.

Chief Executive Tim Warrillow said: ‘The Fever-Tree brand has performed well in 2023, growing our market share in all of our key markets, despite a challenging macroeconomic environment. The US ended the year as our largest region, where we have extended our leadership position in both the tonic and ginger beer categories. The brand enjoyed a strong Christmas trading period in the UK, especially in the on-trade, whilst at home, our new espresso martini mixer clearly became a festive drink of choice. Despite recession in Germany impacting our European performance and the one-off effect of the transition to our new subsidiary in Australia, we remain confident of driving good growth in those regions in 2024.’

The company reports annual results on March 26.

Shares traded 1.2% lower at 1,000.00 pence each in London on Thursday morning.

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