UK Demand Boosts Revenue For Tonic Maker Fevertree
Fevertree Drinks said on Thursday it expects to report a surge in revenue for 2018, as warmer-than-usual summer and Christmas demand drove sales of its flavoured tonic water and other mixers.
Shares of the company opened 8.5% higher as it said it expects revenue to have increased by 39% to £236 million in the year ended 31 December.
Fevertree has rapidly grown over the last few years as sales of high-end gin surged in Britain, while also pushing ahead with its expansion in the United States.
More than 66 million bottles of gin were sold in the country last year, a rise of 41% from a year earlier, according to the latest figures from the Wine and Spirit Trade Association.
Fevertree, named after the colloquial term for the cinchona tree whose bark produces tonic water ingredient quinine, said UK revenue jumped nearly 52% in 2018.
The company also said it expects the outcome for the full year will be comfortably ahead of its expectations.
"We continue to view Fevertree Drinks as one of the most attractive growth stories in European beverages," Jefferies analyst said in a note.
Shares of the company have jumped more than 15-fold since their debut on London's junior market in November 2014.