Slide 1: Fevertree Drinks plc FY23 Interim Results
Fevertree Drinks plc FY23 Interim Results 12th September 2023
Slide 2: Key Messages & Long-Term Strategy
1 Key Messages & Long-Term Strategy AGENDA 2 Sustainability 3 Financial Review 4 Strategic update 5 Summary
Slide 3: Key messages
Key messages I Good revenue growth; margin improvement projects underpin FY24 confidence Delivering margin Top line growth and share gains Positive FY24 margin outlook improvement projects ✓ Group revenue growth 9% ✓ In the contracting phase of a ✓ Confident of better security of UK/Europe glass ten
Slide 4: Fever-Tree's strategic blueprint is driving success across global markets
Fever-Tree’s strategic blueprint is driving success across global markets Innovation-led brand, with a focus on quality • The brand has revitalised the category through innovation • Unrivalled focus on sourcing the best quality ingredients from around the world that excite the consumer Strong relati
Slide 5: Fever-Tree has a significant, growing global opportunity
Fever-Tree has a significant, growing global opportunity Substantial volume growth opportunity1 Supportive long-term macro trends ✓ Spirits taking share from wine and beer ✓ Premium segments are driving spirit growth ✓ Easy-to-make cocktails are trending Adjacencies ✓ Growing interest in long mixed
Slide 6: Sustainability
Sustainability I Focus on carbon, malaria and supporting diversity Circular Economy Climate Communities Conservation Colleagues Carbon footprint Malaria No More Diversity, Equity & Inclusion • Full Product Carbon Footprint • 10th year of long-standing • Our DEI Committee is focused on completed with
Slide 7: Financial review
Financial review 7
Slide 8: H1 FY23 Financial highlights
H1 FY23 Financial highlights Revenue Gross Profit Adjusted EBITDA1 £175.6m 9% £53.8m ↓11% £10.2m ↓54% Margin 30.7% Margin 5.8% • H1 revenue in-line with • Expect Full Year margin to • Expect EBITDA margin expectations be in-line with previously improvement in H2 (margin guided range of 31%-33% in H
Slide 9: H1 FY23 gross margin in-line with expectations
Financial review I H1 FY23 gross margin in-line with expectations GDP Portfolio FT Brand Gross Profit % impact % Pricing benefit +190bps 34.9% 30.8% 30.7% ➢ Expect further upside in H2 as we recognise full benefit of price increases 46.9% +1.5% -1.3% US production and logistics +150bps ➢ Increased U
Slide 10: Driving improvement in glass pricing
Financial review I Driving improvement in glass pricing • Energy has recalibrated: Hedged levels for 2024 aren’t back to Glass cost 2021 levels but will be significantly below our hedged 2023 levels. We are inflation is therefore driving 600bps • We are at contracting phase of our tender for our UK/
Slide 11: Further drivers of margin improvement
Financial review I Further drivers of margin improvement Efficiency and profit enhancement projects across global Driving improvements in US COGs operations Increased capacity and flexibility Focus on cost management and operational • Trans-Atlantic freight rates are recalibrating towards improvemen
Slide 12: Continued investment behind growth
Financial review I Continued investment behind growth £m H1 FY23 H1 FY22 Change • The business continues to focus on investing for growth given the opportunity ahead Revenue 175.6 160.9 +9% • Operating expenses increased to 24.9% of revenue Gross profit 53.8 60.1 -11% • Marketing spend was 9.9% of F
Slide 13: Working capital increase driven by inventory
Financial review I Working capital increase driven by inventory; cash remains strong £m H1 FY23 H1 FY22 • Working capital increased to 24.9% of LTM revenue Working capital 89.4 76.3 o Trade and other receivables profile improved, - Inventories 75.6 53.3 reflecting strong recoverability - Trade and o
Slide 14: Guidance and outlook
Financial review I Guidance and outlook FY23 guidance FY24 outlook Comfortable with consensus revenue growth of +10% Group £380m - £390m +10% to +13% for FY24 Reflects challenging • Return to growth in the UK driven by cocktail mixers and UK £111m - £114m -4% to -2% summer trading, due to adult soft
Slide 15: Strategic update
Strategic update 15
Slide 16: US: Winning in significant categories
US I Winning in significant categories Revenue £m Change Constant currency US 56.1 +40% +32% Fever-Tree Off-Trade sales growth by category1 Fever-Tree is the #1 % growth YoY Tonic and Ginger Beer brand in the US by value +60% +38% +23% +24% +21% +17% Total Tonics Ginger Beer Ginger Ale* Club Soda Sp
Slide 17: US: Strong customer relationships and distribution gains
US I Strong customer relationships and distribution gains driving growth Mutually beneficial relationship with retailers Distribution gains Category leader across the largest Significant On-Trade wins Significant Off-Trade wins retailers in America Fever-Tree providers buyers with: • Comprehensive i
Slide 18: US: Innovation is driving growth
US I Innovation is driving growth Blood Orange Ginger Beer Cocktail mixers • Launched in Q3 2022 to extend the Ginger beer category • Launched Classic Margarita, Light Margarita & Classic by introducing interesting flavours Bloody Mary in April 2023 • Aim to recruit new customers and extend our #1 v
Slide 19: UK: Fever-Tree continues to be the UK's mixer of choice
UK I Fever-Tree continues to be the UK’s mixer of choice Revenue £m Change On-Trade Total UK 53.8 +1% • Fever-Tree’s value share is >5% On-Trade 25.3 +1% higher than 20192 Off-Trade 28.5 flat • The brand is in c.16% more outlets than pre-covid2 UK mixer value share by brand1 • Premium spirits volume
Slide 20: UK: Broadening the Fever-Tree portfolio
UK I Broadening the Fever-Tree portfolio to capitalise on spirit trends UK spirit value and growth by category1 Fever-Tree value share by mixer category2 Other significant and Off-Trade value (£m) % (On- and Off-Trade combined) growing categories in the portfolio are Premium Adult Soft Drinks (e.g.
Slide 21: UK: Investing in marketing and new product development
UK I Investing in marketing and new product development Cocktail mixers successful launch Off-Trade activity & co-promotions ✓ Very encouraging interest from both the • Co-promotion with Pernod On- and Off-Trade Ricard using branded cocktail mixer bays in Sainsbury’s, with ✓ Gained >3,000 distributi
Slide 22: Europe: Fever-Tree is driving premium mixer growth
Europe I Fever-Tree is driving premium mixer growth Revenue £m Change Constant currency Europe 50.5 +9% +5% (Fever-Tree brand revenue) Europe total revenue* 56.1 +7% +4% European retail branded mixer value share1 % share, H1 2023 Other 15% 13% Schweppes premium 9% 2% 2% 10% Bundaberg 4% 5% Thomas He
Slide 23: Europe: Portfolio aligns to growing and premiumising spirits
Europe I Fever-Tree’s portfolio aligns to growing and premiumising spirits Spirit category forecasted sales value growth1 Fever-Tree’s growth by category CAGR 2022-2026 CAGR 2019-2023 Versatile mixers (e.g. Pink Total category Premium Grapefruit + Mexican Lime Soda) 31% which pair with a diverse ran
Slide 24: Europe: Key marketing initiatives
Europe I Key marketing initiatives based on popular drinking occasions Focus on Tonics Focus on Ginger Beer Focus on Sparkling Pink Grapefruit • G&T continues to gain popularity and • Fever-Tree is the #1 Ginger Beer Brand in • Activations across a number of markets to premiumise across Europe Europ
Slide 25: ROW: Australian transition to new distribution partner
ROW I Australian transition to new distribution partner Revenue £m Change Constant currency Inventory buy-backs as part of our distributor transition have impacted H1 revenue in Australia, and therefore our ROW region, ROW 9.6 (36)% (35)% but we are confident in a strong H2 performance Clear opportu
Slide 26: Summary
Summary I Good strategic progress; more positive margin outlook Delivering margin Top line growth and share gains Positive FY24 margin outlook improvement projects ✓ Group revenue growth 9% ✓ In the contracting phase of a ✓ Confident of better security of UK/Europe glass tender process glass supply,
Slide 27: 186-188 Shepherds Bush Road, London W6 7NL
186-188 Shepherds Bush Road, London W6 7NL Tel. 0207 349 4922 #FEVERTREEMIXERS info@fever-tree.com FEVER-TREE.COM