Fever-Tree Drinks plc (LON:FEVR) revealed a 34% increase in its annual adjusted core earnings on Tuesday, boosted by the prevailing UK gin craze.
The company said that its annual adjusted core earnings grew 34% to £78.6 million, compared to 2017’s £58.7 million figure.
Events such as the World Cup and the Royal Wedding boosted the company’s UK growth last year.
“Performance over the summer was exceptional, aided by the prolonged period of hot weather as well as a number of significant national events including the Football World Cup and Royal Wedding all of which contributed to the continued growth and popularity of the gin category,” the company said in a statement.
It added that more gin had been sold during the three summer months in 2018 alone than the summers of 2014 and 2015 combined.
The nation’s love of gin saw 66 million bottles purchased last year, an annual rise of 41%. Fever-Tree benefits from the UK’s growing thirst for gin because its premium tonic water is increasingly being paired with the alcohol.
In January Fever-Tree said it anticipated an increase in its full-year revenue as a result of strong UK trading over the summer months and the Christmas period.
On Tuesday the premium tonic water maker, which in fact posted a 40% increase in revenue, said that it has consolidated its position as number one mixer by brand value in the UK.
It said that it has continued to focus on innovation and product development as its extended its ‘Refreshingly Light’ low-calorie range in addition to successful new flavour launches such as Cucumber Tonic and Citrus Tonic.
Fever-Tree also revealed that it has been named the top best-selling and trending tonic water in the Drinks International’s survey for the fifth year running. The survey includes the world’s top 250 bars.
“2018 was a significant year for Fever-Tree. In the UK, we strengthened our position as the leading mixer brand in the Off Trade. In the US, we successfully established our own operations and the business made real progress in deepening and widening its presence in multiple European regions,” Co-founder and CEO of Fever-Tree Tim Warrillow commented on the results.
“At this early stage in the year, the Group is trading in line with Board expectations and we remain excited about the size of the opportunity that lies ahead,” he said.
Shares in Fever-Tree Drinks plc (LON:FEVR) were trading at -1.26% as of 09:26 GMT Tuesday.
