Slide 1: Fevertree Drinks plc FY24 Interim Results
Fevertree Drinks plc FY24 Interim Results 12th September 2024
Slide 2: Agenda
1 Key Messages AGENDA 2 Sustainability 3 Financial Review 4 Strategic Update 5 Summary
Slide 3: H1 Summary: The brand is gaining share in all regions despite a tough macro backdrop
H1 Summary I The brand is gaining share in all regions despite a tough macro backdrop Fever-Tree is outperforming Despite challenging near-term market conditions H1 Nielsen sales growth +19% • Tough spirit market backdrop Outpacing total mixer category growth by 10%4 • De-stocking as the spirits
Slide 4: Margin improvement on-track alongside continued investment in the brand
Margin improvement on-track alongside continued investment in the brand Delivering gross margin improvement Continued investment behind the brand The Group will deliver c.600bps of gross margin expansion Marketing spend has increased over the last few years in FY24 with improvements from better
Slide 5: Drinks trends continue to be firmly in Fever-Tree's favour
Drinks trends continue to be firmly in Fever-Tree’s favour Spirits growth is forecast to continue Consumers increasing desire for diversity and quality Spirit value growth forecast by price tier1 Expanding occasions Forecast CAGR, 2024 - 2028 • Consumers are seeking quality drinks regardless of the
Slide 6: Fever-Tree is uniquely positioned as consumer preferences evolve
Fever-Tree is uniquely positioned as consumer preferences evolve Shaping the portfolio to be relevant across a broad range of Tonic Gingers Flavoured Sodas drinking occasions The brand has revitalised the mixer category through innovation Non-Tonic carbonated mixers, such as Ginger Beer and flav
Slide 7: Sustainability: H1 progress driven across the full ESG agenda
Sustainability I H1 progress driven across the full ESG agenda Climate Circularity Communities Conservation Colleagues • 100% renewable • Engaged suppliers • Continued support • Ongoing • Developing baseline energy used across to conduct first of Malaria No More partnership with DEI indicators to ou
Slide 8: Financial review
Financial review 8
Slide 9: H1 FY24 Financial highlights
H1 FY24 Financial highlights Revenue Gross Profit Adjusted EBITDA1 Fever-Tree brand: £62.0m 15% £18.2m 79% £170.6m 0% Total Group: Margin 35.9% Margin 10.5% £172.9m ↓2% 520bps 470bps • FT Brand Constant Currency • Gross margin will continue • Continued investment, revenue growth of +2%. to imp
Slide 10: Financial review: Strong gross margin recovery
Financial review I Strong gross margin recovery £m H1 FY24 H1 FY23 Change • Fever-Tree Brand Revenue was up +2% year-on-year at constant currency. FT Brand Revenue 170.6 170.0 0% • Gross Margin improved significantly (+520 bps) due to Total Group Revenue 172.9 175.6 -2% improved glass pricing, lower
Slide 11: Financial review: Strong cash generation, cash return in FY25
Financial review I Strong cash generation, cash return in FY25 £m H1 FY24 H1 FY23 FY23 • Working capital has improved since FY23 year-end but remains elevated compared to H1 FY23: Working capital 96.3 89.4 103.8 Inventory levels have reduced as we leverage our new - Inventories 59.9 75.6 67.6 tech
Slide 12: Financial review: Margin recovery on track
Financial review I Margin recovery on track H1 & H2 Gross Margin FY22 to FY24 FY24 Margin Drivers: c. 600bps expected Glass c. +400bps +730 bps 38.0% 37.4% 35.9% 33.5% US Production + Logistics c. +200bps 32.0% 30.7% Price c. +300bps Inflationary cost impacts c. -200bps H1 22 H2 22 H1 23 H2 23 H1 24
Slide 13: Financial review: H1 2024 Gross Margin Bridge
Financial review I H1 2024 Gross Margin Bridge H1 FY24 Margin Bridge H1 FY24 includes the impact to P&L of selling opening balance sheet inventory valued at 2023 cost of goods. +3.1% -2.3% The H2 FY24 period will recognise the lower 2024 -0.9% cost of goods across the full 6-month period, which +1.1
Slide 14: Financial review: Drivers of medium-term margin recovery
Financial review I Drivers of medium-term margin recovery Softening inflationary headwinds Expanding our production footprint Pricing and efficiency initiatives • FY24 P&L still includes a • We remain committed to Pricing Driving COGs proportion of FY23 costs due building our US production improveme
Slide 15: Financial review: FY24 Outlook
Financial review I FY24 Outlook • Fever-Tree brand revenue: o Post-period end performance +13% year-on-year o Bringing year-to-date Fever-Tree brand growth at the end of August to +4% o We expect H2 growth of c.7-10% for the Fever-Tree brand o Giving a range of c.4-5% growth for Fever-Tree brand acr
Slide 16: Strategic update
Strategic update 16
Slide 17: Long-term strategy to build the brand globally across premium drinking occasions
Long-term strategy to build the brand globally across premium drinking occasions Portfolio innovation & marketing Driving outperformance globally Maintained our #1 position in the UK1 Continued Gained 3.6% ppts share of investment non-Tonic mixers in the UK behind the year-on-year2 brand Outpa
Slide 18: US: Fever-Tree significantly outperforming
US I Fever-Tree significantly outperforming Revenue £m Change Constant currency US 60.3 +7% +10% Value share change by brand1 H1 YoY % change Tonic Ginger Beer 6% 3% 0% 0% 0% -1% -1% -1% -2% -2% Fever- Schweppes Canada Q Drinks Polar Fever- Gosling's Bundaberg Reed's Q Drinks Tree Dry Tree 18 1Niels
Slide 19: US: Good growth across On-Trade and Off-Trade channels
US I Good growth across On-Trade and Off-Trade channels Off-Trade: Can format driving growth On-Trade: Strong activations and distribution gains Significant On-Trade wins • Launched 8x150ml can packs in Q4 2019 to target loyal Fever-Tree consumers who want to buy a higher quantity of product more ea
Slide 20: US: Expanding our cocktail mixer collection
US I Expanding our cocktail mixer collection Initial cocktail mixer flavours gaining traction Launching Espresso Martini in Q4 Huge seasonal spikes Google searches for Espresso Martini Dec 2019 Dec 2020 Dec 2021 Dec 2022 Dec 2023 • Espresso Martini is trending – it’s one of • Launched Classic Margar
Slide 21: UK: Fever-Tree remains mixer of choice despite a tough market backdrop
UK I Fever-Tree remains mixer of choice despite a tough market backdrop Revenue £m Change Fever-Tree is well positioned as the macro improves Total UK 50.9 (6)% • Fever-Tree remains the number one UK mixer H1 market headwinds brand by value3 • We have gained more value share than any other • Spirits
Slide 22: UK: Driving growth of mixer categories beyond Tonic
UK I Driving growth of mixer categories beyond Tonic Fever-Tree revenue contribution by category Flavoured Sodas Ginger Ale % sales 4% 7% Non-Tonic • Fever-Tree is the • Fever-Tree Ginger Adult Soft Drinks categories grew #1 Flavoured Ale has increased 7% by c.10% in H1 Soda brand by household Other
Slide 23: UK: Marketing activity highlighting Fever-Tree's broad occasionality
UK I Marketing activity highlighting Fever-Tree’s broad occasionality Tonic Cocktail Mixers Mirabeau Rose Spritz Reminding people to “mix with the Demonstrating simplicity Taking mixing beyond spirits best” Limited Edition trial of a National radio campaign in April to Rose Spritz with Mirabeau grow
Slide 24: Europe: Depletions significantly ahead of shipments
Europe I Depletions significantly ahead of shipments Revenue £m Change Constant currency Europe 44.5 (12)% (10)% (Fever-Tree brand revenue) Europe total revenue* 46.8 (17)% (15)% The decline in revenue was exaggerated by distributor order phasing, with underlying depletion sales in Europe +1% vs H1
Slide 25: Europe: Fever-Tree continues to grow value share and distribution
Europe I Fever-Tree continues to grow value share and distribution Fever-Tree value share growth1 H1 2024 vs 2023 New product listings supporting growth 3.5% 3.6% Total mixers Southern Europe Premium mixers 2.6% 1.6% 1.3% 0.4% 0.5% Nordics & ROI -0.5% Southern Europe Nordics & ROI North & C. Europe
Slide 26: Europe: Ginger Beer and Sparkling products driving portfolio diversification
Europe I Ginger Beer and Sparkling products driving portfolio diversification Fever-Tree revenue contribution by category Ginger Beer category growth1 % sales H1 2024 vs H1 2023 1% 19% Fever-Tree is 4% 5% extending its Other mixers 20% lead as the 22% 5% Sparkling #1 Ginger Beer brand in Gingers -2%
Slide 27: ROW: The brand continues to outperform in Canada and Australia
ROW I The brand continues to outperform in Canada and Australia Revenue £m Change Constant currency Australia ROW 14.9 +56% +57% • New Fever-Tree Australia team focused on sales and Canada marketing to serve more accounts and accelerate growth. • Fever-Tree’s Sodas and Ginger Ale sales significantly
Slide 28: Summary: The brand is in a strong position. We are investing for growth
Summary I The brand is in a strong position. We are investing for growth and margin delivery Fever-Tree is outperforming against Delivering margin improvement Investing in premium adult drinking a tough backdrop projects occasions The brand is gaining share in all The Group will deliver c.600bps
Slide 29: 186-188 Shepherds Bush Road, London W6 7NL Tel. 0207 349 4922 info@fever-tree.com
186-188 Shepherds Bush Road, London W6 7NL Tel. 0207 349 4922 #FEVERTREEMIXERS info@fever-tree.com FEVER-TREE.COM