Fever‑Tree’s Half‑Year Results: Flat Sales, but Profits Lit Up
Revenue 2024‑H1: US Steps Up, UK Slides Down
Fever‑Tree just dropped its first‑half earnings, and the headline is a bit of a mixed bag. In constant currency terms, revenue stayed almost level. The U.S. market actually earned 10 % more, while the U.K., hit by a nasty spell of weather and a hiccup in orders, saw sales fall by 6 %.
Margins on the Rise
But there’s a bright spot: Adjusted EBITDA jumped a whopping 79 % thanks to a significant easing of cost pressures. The group is now forecasting about 4‑5 % growth for the full year—down from earlier, more optimistic estimates of close to 10 %.
Helming the Waters – Charlie Huggins Weighs In
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“Fever‑Tree can’t catch a break at the moment,” says Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club.
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He explains, “After an annus horribilis in 2023, 2024 was supposed to be the year when sales came roaring back. Instead, bad weather in the U.K. and Europe and delayed ordering stopped sales from sprinting ahead.”
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Huggins notes that it’s not just the weather. “Weak consumer sentiment and a normalisation of alcohol consumption after the pandemic set the whole spirits and mixer category back. Fever‑Tree expects sales to grow only 4‑5 % this year, versus previous expectations of closer to 10 % growth.”
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On the upside, a big bust in cost pressures has lifted margins and the hopes are high for continued improvement as inflation slows.
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He also mentions that the weather Gods were kinder in July and August, giving the second half a better start.
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But for Fever‑Tree to truly spark sales, the broader spirits and mixer category needs to recover—a sign of that hasn’t appeared yet.”
Bringing the Buzz Back
In short, Fever‑Tree’s half‑year shows that while sales fizzled under a gloomy sky, profits have tasted sweet again. The outlook is cautiously optimistic, but the real question remains: can the market’s slow spirits lift the entire bottle? Only time will tell, but certainly, Fire‑Tree’s cocktail of results is no less dramatic.
