TIDMFEVR
RNS Number : 6376S
Fevertree Drinks PLC
18 March 2021
March 18, 2021
Fevertree Drinks plc
FY20 Preliminary Results to 31 December 2020
FY20 Highlights
-- Fever-Tree's proactive actions strengthened our position as
the leading global premium mixer brand.
-- Despite widespread On-Trade closures, a channel which has
historically accounted for c.45% of Group revenue, Full Year
revenues reduced by only 3% year-on-year due to a very strong
Off-Trade performance.
-- Off-Trade sales exceeded expectations across our regions,
even during periods when the On-Trade was reopened:
o Maintained position as number one brand in the UK retail mixer
category, with 40.1% value share[1]
o Significant momentum in the US as the brand continues to gain
traction with retailers and consumers.
o Very strong second half performance in Europe, driven by
strong Off-Trade sales, importer restocking and GDP portfolio brand
revenue.
o Excellent progress in our two largest ROW markets, Australia
and Canada.
-- Capitalised on supportive trends and reacted quickly to
evolving purchasing and consumption habits:
o Spirits continue to gain share from wine and beer, with
premium segments driving category growth
o Marketing spend focused on increased at-home consumption with
the Group's first ever national television advertisement in the UK,
driving increase in consumer awareness and resulting in Fever-Tree
being in more households than any other mixer brand[2]
o Our focus on digital in the US gained increased exposure for
the brand through targeted media.
o Investment in online retail platforms across our regions drove
significant new growth in this channel.
-- The Group continued to invest for long-term growth:
o Successful launches of the new Premium Soda range in the UK,
specifically targeted at the vodka category and Sparkling Pink
Grapefruit in the US, targeted at the fast-growing tequila
category.
o Provided support to our On-Trade customers through the
pandemic resulting in strengthened relationships, significant
re-contracting and further contract wins.
o Successful acquisition and integration of GDP Global Drinks
Partnership, the Group's sales agent in Germany, underlining the
Group's ambition in Europe.
o Commissioned our first US bottling line, based on the West
Coast, which began production in December 2020.
o Continuing to invest in our team across our regions with 35
new employees joining during 2020 and we welcomed an additional 51
new members of the team following the acquisition of GDP.
Financial highlights
GBPm FY20 FY19 Change
------------------------------- ------ ------ ---------
Revenue
UK 103.3 132.6 (22)%
US 58.5 47.6 23%
Europe[3] 65.3 64.4 1%
ROW 25.0 15.8 58%
Total 252.1 260.5 (3)%
Gross profit 116.3 131.5 (12)%
Gross margin 46.2% 50.5% (430)bps
Adjusted EBITDA[4] 57.0 77.0 (26)%
Adjusted EBITDA margin 22.6% 29.6% (700)bps
Diluted EPS (pence per share) 35.76 50.26 (29)%
Dividend (pence per share) 15.68 15.08 4%
Net cash 143.1 128.3 12%
------------------------------- ------ ------ ---------
-- Resilient revenue performance of GBP252.1 million, a decrease of only 3% year-on-year.
-- Increased investment and the impacts of COVID-19 on revenue
and gross margin reduced our Adjusted EBITDA margin to 22.6% but we
remain confident that continuing to invest in our people and our
brand will position us strongly as we emerge from the current
period of uncertainty.
-- Asset light business model continues to underpin the Group's
strong financial position, with cash increasing to GBP143 million;
an increase of 12% year-on-year.
-- Proposed full year dividend of 15.68 pence per share, an
increase of 4% year-on-year, reflecting our financial strength,
confidence in the business, as well as our strong cash
generation.
FY21 Guidance
Whilst there remains continuing uncertainty relating to
COVID-19, especially regarding the pace of both vaccine deployment
globally and the lifting of restrictions that continue to impact
the On-Trade across our regions, we believe it is appropriate to
reintroduce guidance for 2021.
The first months of the year have seen a continuation of very
positive trading in the Off-Trade across all our regions. While we
would expect some of the Off-Trade demand to switch to the On-Trade
as it begins to re-open, we estimate that the Off-Trade will remain
strong. As highlighted above, the On-Trade continues to be impacted
by widespread lockdowns but with the gradual easing of restrictions
over the coming months, we expect momentum to build as the year
progresses. As a result, we remain well placed across our regions
and across channels as the recovery occurs and we expect the Group
to deliver revenue growth of between 12% to 16% in 2021, with gross
and EBITDA margins consistent with FY20.
Tim Warrillow, Co-Founder and CEO of Fever-Tree, commented
"Although 2020 presented many unforeseen challenges, our
resilient performance highlights the strength of the business and
the Fever-Tree brand which is testament to the proactive and
entrepreneurial way our team and our partners responded.
Our performance in the Off-Trade was especially strong,
exceeding our expectations across all our regions. Numerous periods
of lockdown during the year encouraged increased consumer interest
in premium spirits and stimulated excitement about mixing drinks at
home, attracting more households and new consumers to the
Fever-Tree brand than ever before. Consequently, we have increased
our penetration in the UK, driven value share gains in the US, and
Europe, and gained real traction in Canada and Australia.
Despite the restrictions and closures that impacted the On-Trade
for a large proportion of the year we didn't furlough any of our
team enabling us to support our customers across the On-Trade and
Off-Trade, strengthening our relationships and securing new
contracts.
Our resilient performance can also be attributed to the
proactive and rapid actions taken by the business to respond to the
evolving consumption and purchasing habits that emerged during the
pandemic. Crucially, we did this while remaining focused on the
longer-term opportunity. We expanded our team across all our
regions, as well as acquiring our sales agent in Germany, and began
local production in the US for the first time. We also launched new
products with our Premium Soda range in the UK targeting the
significant vodka category and Pink Grapefruit in the US targeting
the fast-growing tequila category. Both launches were very
encouraging, delivering an excellent rate of sale growth as well as
attracting new consumers to the brand.
Whilst our On-Trade business remains impacted by the continued
shutdowns and restrictions across many of our regions, we have had
a very positive start to 2021 across the Off-Trade. The momentum
seen in 2020 has continued in the first part of the new year with
strong sales in our major markets, most notably the UK and US. We
are working closely with our On-Trade customers as they prepare for
re-opening across our regions and while we are mindful of the
gradual nature of easing of restrictions, we share their optimism
and excitement for this important channel in the months and years
ahead. Our confidence in the future is underpinned by the long-term
trend towards premium spirits and long mixed drinks which
accelerated during 2020 and a trend that Fever-Tree, with our
category leadership position, range and relationships, remains
uniquely placed to continue to benefit from."
There will be live audio webcast on Thursday 18(th) March 2021
at 10:00am GMT. The webcast can be accessed via:
https://www.investis-live.com/fever-tree/6040faa949aa2a0e00f3a9fa/gwvv
For more information please contact:
Investor queries
Ann Hyams, Director of Investor Relations I ann.hyams@fever-tree.com I +44 (0)7435 828 138
Media queries
Oliver Winters, Director of Communications I
oliver.winters@fever-tree.com I +44 (0)770 332 9024
Nominated Advisor and Joint Broker - Numis Securities
Garry Levin I Matt Lewis I Hugo Rubinstein I +44 (0)20 7260
1000
Joint Broker - Investec Bank plc
David Flin I Alex Wright I +44 (0)20 7597 5970
Financial PR advisers - Finsbury
Faeth Birch +44 (0)7768 943 171; Anjali Unnikrishnan +44 (0)
7826 534 233; Amanda Healy +44 (0)7795 051 635
Group performance I Good progress during 2020
I am incredibly proud of how Fever-Tree has performed this year,
and how our team has reacted to the uncertain and challenging
environment. The collective response of our team, strength of our
brand, our key relationships with customers and suppliers, and the
speed at which we were able to take proactive steps, has enabled us
to further extend our clear position as the global leading premium
mixer brand.
The progress we have made this year alongside increased momentum
behind the long-term trends of spirits premiumisation and the move
to long mixed drinks gives me confidence that we will exit this
on-going period of uncertainty in a stronger position than we
entered it.
The Group delivered revenue of GBP252.1m, representing a small
decline of 3% year-on-year. This was an extremely resilient
performance in the context of widespread On-Trade closures across
all our markets given that this channel typically represents 45% of
our global revenue, as well as being a reflection of our very
strong performance in the Off-Trade across our regions, which
exceeded our expectations. Of particular note was the performance
delivered in the US as well as our major ROW regions of Australia
and Canada.
The shift in channel mix, along with the outperformance
delivered in the US, and the incremental GDP portfolio brand
revenue impacted our margins for the full year, with gross margin
reducing to 46.2%. As well as navigating the short-term
uncertainty, we took the decision early in the pandemic to continue
to invest in the brand and our team, as we remained focused on the
long-term opportunity ahead for the Group. This resulted in our
adjusted EBITDA margin reducing to 22.6% this year, and
consequently profit before tax was GBP51.6m. We ended the year with
a strong balance sheet and net cash of GBP143.1m, an increase of
12% year-on-year.
COVID-19 update I Supporting our people and communities
At the start of the pandemic, we set-up a cross-departmental
team to co-ordinate the Group's response. Throughout the period,
our asset light, outsourced business model provided us with the
flexibility to react quickly to changing channel dynamics and
consumer demand as well as the resilience to withstand the ongoing
challenges posed by the pandemic.
The way our team across the globe has adapted to working
remotely and the commitment they have demonstrated through the
period is a testament to the talent and dedication of our
employees.
Throughout the crisis we have strived to provide security and
certainty to our team and therefore pledged very early into the
pandemic to not use any Government furlough scheme or receive
Government grants across our regions. Instead, during periods of
lockdowns and restrictions we have focused our On-Trade sales teams
on new projects and initiatives as we look to 2021 and beyond.
As well as focusing on our employees' wellbeing, we offered
support to communities and groups across our regions, including
financial support to local charities, encouraging staff with
capacity to volunteer their time, and donating to initiatives
supporting key workers. In the UK we supported "Salute the NHS" in
their mission to provide one million meals to NHS frontline staff,
donating 100,000 soft drinks to be included in their meal packs as
well as donating to similar schemes supporting front line workers
across many of our other regions. In addition, we have continued to
give significant financial and marketing support to our charitable
partner, Malaria No More in keeping the fight against malaria in
the public eye through various external and internal
initiatives.
Strategic update I Strong business model underpinned FY20
performance
Revenue, GBPm FY20 FY19 Change
-------------- ----- ----- ------
UK 103.3 132.7 (22)%
US 58.5 47.6 23%
Europe 65.3 64.4 1%
ROW 25.0 15.8 58%
Total 252.1 260.5 (3)%
============== ===== ===== ======
UK I Good strategic progress and strong Off-Trade
performance
Fever-Tree made progress during an uncertain year, increasing
our household penetration and consolidating our market leading
position. The On-Trade, which usually represents approximately 50%
of our UK revenues, was not only forced to close for large parts of
the year, but when it did reopen, remained at reduced capacity
under varying regional restrictions. As a result, revenue in the
On-Trade was down 62% compared to 2019. However, this impact was
mitigated by a very strong Off-Trade performance, which saw sales
increase by 20% compared to 2019, resulting in total UK revenues
down 22% year-on-year.
The Off-Trade was characterised by increased demand during the
first lockdown as consumers increased their at-home consumption of
long mixed drinks. Encouragingly, even during the period when the
On-Trade reopened in July and October, high levels of demand
continued in the Off-Trade reflecting a sustained behavioural shift
in relation to at-home consumption with Fever-Tree's UK household
penetration increasing by 7% over the course of the year[5].
Our agile business model meant we were quick to adapt to
changing consumer purchasing habits that emerged during the period,
such as the preference for larger pack formats, encouraging us to
accelerate the roll out of our 15 x 150ml can pack as well as an
increased focus and resource in the convenience channel as
consumers shopped closer to home.
Reflecting the shift in consumer spend and growing interest in
mixing drinks at home, we redeployed our marketing spend to focus
on the at-home occasion. This included our first national
television campaign, on-shelf initiatives in the Off-Trade
including a dedicated Gin & Tonic Bay in Sainsbury's, as well
as virtual masterclasses which engaged and educated consumers from
their own homes during the festive period.
Alongside our ability to react to the shorter-term changes in
consumer demand, our continued focus on the longer-term opportunity
enabled us to push ahead with our innovation plans during the year.
This included launching our Premium Soda range in March and our
Rhubarb and Raspberry Tonic in October. The soda range received a
very positive response in the Off-Trade, with new listings secured
and very encouraging rate of sale performance across retailers.
As a result of our proactive approach and decision to continue
to invest in the brand, in our innovation and in our team,
Fever-Tree increased volume share year-on-year and gained
distribution across all major retailers, continuing to strongly
outperform other premium mixer competitors to remain the number one
mixer by value at UK Off-Trade, with 40.1% value share[6].
The spirits category also performed strongly during the year in
the Off-Trade with more households purchasing spirits than the
traditional at home drinks of wine or beer (growth of +4.1pp of
penetration for spirits vs wine +1.1pp and beer +2.7pp), with gin
and rum the stand-out performers. This not only benefited our core
Tonic SKUs, but also underpinned significant progress for our
Gingers range which performed well from an increasing distribution
base, with an 80% increase in the year[7].
As the On-Trade channel closed abruptly in March our team was
proactive in offering support to our customers through credit
extensions and payment plans, as well as working closely with our
end accounts to ensure they were offered the support they required
to adapt to the new ways of trading on reopening. This was
gratefully received and has strengthened our relationships with
many of our key long-term customers.
Following its re-opening in July, the On-Trade gradually began
to recover throughout the summer with the pace of recovery
determined by both sector and location. However, the reintroduction
of restrictions in Autumn and again in the run up to Christmas, had
a significant impact across the whole sector.
Despite this, Fever-Tree's brand strength and customer loyalty
enabled us to maintain our strong market share in the On-Trade
during the period of re-openings in Q3 2020[8]. While we are
mindful of the continued uncertainty surrounding the on-going
restrictions and the timing of the re-openings, we are well placed
to continue to build on this market leading position as the
On-Trade gradually recovers during 2021.
Despite the material challenges the Group has faced over the
course of 2020, we have made good progress in the UK. In the
Off-Trade we sustained our value share and no. 1 position in the
mixer category and drove an uplift in our brand awareness and
household penetration as well as successfully launching new
flavours and formats. Turning to the On-Trade, the steps we took
and supported offered, enabled us to strengthen our already
excellent relationships.
Notwithstanding the on-going uncertainty around the timing of
the On-Trade reopening, the steps we have taken and position we
have established provides us with an excellent platform to deliver
growth in 2021 and beyond. Our confidence in the future is
underpinned by the long-term trend towards long mixed drinks which
accelerated during 2020 and one that Fever-Tree, with our category
leadership position, range and relationships, remains uniquely
placed to continue to lead its growth.
US I Fever-Tree growing strongly, outperforming the mixer
category in the Off-Trade
Fever-Tree's performance in the US was strong and significantly
ahead of our expectations across the year, with revenues increasing
23% to GBP58.5m (26% on a constant currency basis).
The priority at the beginning of 2020 was implementing our price
optimisation and expanding our format availability. Unlocking an
affordable premium price position alongside the broadening of our
formats on shelf was designed to encourage increased trial of the
brand, to unlock new occasions, and to increase purchase frequency
from existing Fever-Tree consumers. While the pandemic lead to some
delays, the new pricing was successfully rolled out from March to
June.
We are confident that the reposition has started to deliver the
desired results, driving strong sales uplifts across key retailers
ahead of the category, with rate of sale driving growth ahead of
distribution gains as the year progressed. Overall Fever-Tree
delivered 57% value growth at retail during 2020[9]; a performance
which exceeded our expectations and ensured we remained the clear
market leader in grocery in the premium mixer category, which
itself is the fastest growing segment in the category.
Alongside the impact of the price optimisation, our strong
Off-Trade performance can be attributed to a number of other
factors. Firstly, the switch to at-home consumption following
On-Trade closures and the propensity towards making long mixed
drinks at home, with consumption of spirits growing ahead of wine
and beer, and with it the continuing premiumisation across all
spirit categories. Secondly, the benefit of the strong distribution
gains Fever-Tree achieved during the second half of 2019, which
gave the brand more prominence in retail at a time when this was
the most relevant channel. And finally, our decision to reposition
and upweight our marketing investment. We redeployed spend from
experiential to digital, from trade to consumer in order to target
the Off-Trade and online channels during the pandemic which drove
increasing consumer awareness and encouraged trial at home. This
included our work with Google as part of their Brand Accelerator
program which provided very encouraging results and insights which
will be taken into 2021 and beyond.
Alongside this investment we focussed on building on our strong
relationships with online retailers, aligning strongly with liquor
delivery platforms to deliver complete drinks solutions for
consumers. In addition, through search and website enhancements we
were able to drive a significant increase in Amazon volumes
year-on-year.
On-Trade sales in the US have been materially affected by
closures related to lockdowns, which have varied by state in length
and extent, but overall have led to very challenging conditions in
this channel since March 2020. Despite this, we continue to enjoy a
strong relationship with Southern Glazer's Wines and Spirits
("SGWS"), with whom we have performed well, especially in the
liquor store channel, leveraging their ability to execute spirits
partnerships as well as their merchandising capabilities. We have
also continued to win new mandates and distribution within the
national Hotel, Casino, Resorts and Restaurant groups, positioning
us well for when the On-Trade re-opens.
Within the portfolio we have seen strong growth across our full
range of mixers, targeting multiple drinks occasions, from the mule
(Ginger Beer) to tonics (Tonic Water) and spritzes (Club Soda).
Within spirits, tequila continues to show very strong growth, and
in the first half of the year we launched a new Sparkling Pink
Grapefruit to pair with tequila to create the perfect low-calorie
Paloma cocktail. This has been our most successful US launch to
date, already gaining significant attention from retailers and
consumers, and we are optimistic about the Pink Grapefruit
opportunity as we look forward to 2021.
This performance, along with the increasing interest surrounding
the US mixer category, will greatly enhance our ability to further
increase our retail footprint and presence on shelf over the course
of the year. In addition, we believe our On-Trade performance will
be enhanced as consumers increasingly begin to demand the same
quality of drink they have been able to enjoy at home rather than
being satisfied with the soda gun when returning to the On-Trade as
it reopens. These factors, along with continued portfolio
innovation directed at US consumer habits, give us real confidence
as we head into 2021 and beyond.
Europe I Extending market leadership across the region
Whilst the impact of On-Trade closures was felt across the
region, Fever-Tree delivered GBP65.3m revenue for the full year, up
1% year-on-year. This result was driven by a very strong
performance in the Off-Trade, a strong recovery in the second half
of the year as importers re-stocked following the initial period of
lockdowns in Spring, and GBP6.4m of incremental revenue from GDP
brands.
Whilst the On-Trade was materially impacted by closures,
especially in Southern Europe which tends to rely more on the
On-Trade and the tourism industry, the Off-Trade performed very
well across Europe, and the premiumisation trend continued to gain
momentum in many countries across the region, with Fever-Tree
driving growth in the category and gaining share in multiple key
European markets.
In our core markets, such as Belgium and Denmark, we have
maintained our market leading position and see further
opportunities to drive distribution across a wider range of mixers
following the success of our tonics by leveraging the brand
strength we have created in these markets.
In the markets that will drive our next wave of growth,
including Germany, Spain and Italy, we continue to see significant
growth opportunities ahead in sizeable and growing mixer
categories. Spain and Italy are both On-Trade led markets and as
such, sales in these countries were more severely impacted this
year. However, the relationship with our local distributors remains
strong and our focus is on identifying opportunities as the
On-Trade reopens.
Germany is currently Fever-Tree's second largest market in
Europe and represents a notable opportunity for the Group. It is
one of the largest mixer markets in Europe and is underpinned by
emerging premiumisation trends evident in both the mixer and
spirits categories. Fever-Tree is gaining share in the fast-growing
and premiumising mixer category, overtaking Thomas Henry to become
the leading premium tonic brand for the first time this year[10].
The acquisition of our sales agent, GDP in July provides us with a
strong operational platform from which to continue to drive our
growth in Germany, where we have built our distribution in major
retailers including ReWe, Edeka and Kaufland. Alongside Fever-Tree,
GDP distributes complementary premium beer and spirits brands. This
portfolio approach is highly suited to the size and outlet
fragmentation of the German market and these portfolio brands
generated GBP6.4m of incremental sales in the second half of
2020.
Looking further ahead, the focus for our Earlier Stage markets,
like France and Netherlands where mixer markets are relatively
immature, is on establishing the optimum route-to-market, building
our distribution, with a focus this year on the convenience
channel, and increasing our local headcount where appropriate.
We have continued to build our European team during the year,
increasing our in country regional expertise across both Northern
and Southern Europe., supported by a growing regional marketing
team ensuring best in class marketing execution and co-promotional
activities with both global and local spirits brands.
As well as investing in our team, we have continued to invest in
marketing across the region with a focus on Off-Trade activities.
This has included investment in retail display visibility across
our core markets, as well as co-promotional activity with a number
of spirits brands including Lillet on a spritz serve in Belgium,
and with Bombay Sapphire on gin and tonic in Germany.
Whilst the impacts of COVID-19 will continue into 2021, we
remain confident and optimistic about the medium and long-term
opportunity in Europe. There are a number of markets that offer
real potential, and we continue to invest and focus on the
opportunity that they present. Fever-Tree is the only premium brand
with scale, distribution footprint and track record across Europe
and this gives us a clear advantage over our premium competitors.
Moreover, European mixer market growth continues to be driven by
the premium segment and led by Fever-Tree.
RoW I Supportive trends and strategic progress driving
growth
We have made very strong progress in our two largest markets,
Australia and Canada, driving total revenue growth for the region
of 58% to GBP25.0m.
In Australia, Fever-Tree is driving growth across the mixer
category and continues to be the clear premium leader. Long mixed
drinks are taking share from wine and beer, led by the gin and
tonic, with the tonic category growing by 34% in Australian grocery
during 2020[11], ahead of gingers and soda. Fever-Tree's increasing
brand awareness, along with significant distribution gains, has
enabled the brand to grow in major retailers such as Woolworths,
where our sales increased over 100% year-on-year. As well as
driving the premiumisation of tonics, gingers and soda to pair with
other popular spirits, we have also looked to expand our formats,
introducing our 500ml bottles to Coles and Woolworths towards the
end of 2020, as well as focusing on our lighter mixers, with Light
Indian Tonic quickly becoming our fastest growing segment,
reflecting the demand for healthier, lighter options.
In Canada, the mixer market continues to premiumise. The premium
segment grew over twice the rate of the mainstream segment in
2020[12], with Fever-Tree driving this growth, using its strong
presence in the premium mixer category to increase trial and
awareness, and secure new distribution with several key accounts.
We grew our tonic sales at retail by 63% over the last 12 months,
contributing to almost half of the tonic water category growth
during 2020, and increasing our value share to a third of the tonic
category at retail. Ginger beer also grew strongly and remains core
to our long-term success in this market. Given our strong rate of
sale in major retailers and contribution to overall mixer category
growth, we are well placed to gain further distribution and
continue to gain share.
Asia remains a region with long-term potential for Fever-Tree.
We have upgraded a number of our distribution partners this year,
ensuring we are with the right partner for the next stage of
development. This year we signed a pan-Asia deal with Accor, the
largest hotel group in the region, to become their preferred
premium mixer partner across Asia. In addition, we have continued
to develop our relationships with the international and local
spirits companies in the region as well as focus on growing our
distribution across key accounts.
Operational Review
Our team worked very closely with our partners throughout our
supply chain to help mitigate the impact of the global pandemic.
This involved steps such as the early securing of significant
contingency stocks of key ingredients, establishment of secondary
warehousing in the UK and granular, real-time demand forecasting
and highly fluid production planning alongside our network of five
bottlers and two canners. Whilst network capacity, efficiency and
lead times for supply into markets were all tested during the year,
continuity of production was retained through the period, testament
to the structure we operate and the quality of both our production
partners and the Fever-Tree supply chain team.
Over recent years the Group has focused on expanding our
outsourced production network, both in response to our growing
global footprint and also in preparation for the range of potential
Brexit outcomes. We now operate across three bottling sites and one
canning site in Continental Europe, including our latest site in
Belgium. This local production network in Europe will underpin our
growth ambitions in the region and has mitigated the impact of
cross-border disruption following the UK's exit from the EU.
Despite multiple operational challenges presented by the
pandemic we worked with our US production partner to commission our
first Fever-Tree US bottling line, based on the West Coast. We
began US production in December 2020, and this will gradually ramp
up over the course of 2021. Alongside this, we have signed a
contract with our US bottling partner to commission an East Coast
bottling line, which we expect to be operational in the latter
stages of 2021. This is an exciting development for the Group,
adding further capacity and flexibility to our network and setting
us up to realise our substantial ambition in the US market over the
next few years.
In July 2020 the Group was pleased to announce the acquisition
of GDP, the Group's sales agent in Germany. GDP is a
well-established sales agent and importer, with a strong portfolio
of premium drinks and a good track record of growing premium
brands.
The acquisition of GDP, with established management,
distribution relationships and sales channels already in place
allows the Group to accelerate the strength and depth of its
presence in Germany much faster than could have been achieved by
building a sales and marketing subsidiary from scratch. The
integration of GDP is proceeding well and has been aided by the
strong cultural fit between organisations and the longstanding
relationship between the senior management of Fever-Tree and
GDP.
The long-term opportunity
While we have acted quickly and dynamically in response to the
challenges of COVID-19 this year, our long-term strategy remains
unchanged and continues to be underpinned by growing global trends,
as well as our excellent track record against the competition. The
longstanding trends of spirit premiumisation and the growing
popularity of long mixed drinks, have not only continued throughout
the pandemic, but in many cases accelerated, giving us even more
confidence in the future growth potential for Fever-Tree.
Premium spirits deliver the authenticity, quality and choice
that consumers are increasingly seeking, as evidenced by the
continued growth of craft distilleries across the globe. This has
been most evident in the US where there are now over 2,000 craft
distilleries, up from 50 in 2005 when we first launched Fever-Tree,
and in the UK where, despite the pandemic, a record 124 new
distilleries were created in 2020 alone.
The advent of the well-crafted premium mixer, pioneered and led
by Fever-Tree, allows these premium spirits to be consumed simply,
in a long refreshing manner that is suited to today's consumer, and
across a wider range of occasions. Due to the variety of flavour
combinations, the wide choice of premium spirits brands and the use
of unique glassware and garnishes, premium long mixed drinks allow
for theatre and engagement and yet due to the simplicity of the
serve, require no bar tender training and can be rolled at scale in
the On-Trade. Equally, and vitally, the quality of the experience
can then be easily replicated at home.
However, perhaps most importantly, long mixed drinks allow
spirits to extend into multiple new occasions, including those
which were traditionally the preserve of beer and wine, be it lunch
time, Al fresco, after work, or even sporting events, thus drawing
in wider audiences.
For all of these reasons, the premium long mixed drink is
becoming central to the serve strategies of major spirits brands
like never before. Spirits have been taking share from beer and
wine over the last 5-10 years, especially at the premium end, with
premium spirits growing volume at a rate of 9.2% CAGR between
2015-2019, whereas wine and beer remained flat[13] and over the
next five years spirits are forecast to continue to take share from
both wine and beer[14]. The US presents a clear example of these
trends, with spirits increasing their share of Total Beverage
Alcohol from 32% to 39% over the last 10 years. These share gains
continued throughout 2020, especially during periods of lockdown
where household penetration of spirits outpaced beer and wine as
3.9 million new US households purchased spirits at retail[15].
Alongside the sustained growth at the premium end of the spirits
category globally, the mixer category has also been growing
strongly, as the popularity of long mixed drinks accelerates.
Between 2012-19, the premium segment of the mixer category grew at
almost five times the rate of the total mixer category, with
Fever-Tree doubling the growth of the rest of the premium segment.
During 2020 the trend to long mixed drinks has accelerated in the
Off-Trade as consumers enjoy long mixed drinks at home as a form of
entertainment and a treat at the end of the working day, with much
of this elevated demand remaining even during periods when the
On-Trade reopened.
What is incredibly encouraging is that Fever-Tree sits at the
heart of this fast-growing global movement. No one else is better
placed. We have the first mover advantage, track record against
competition, international footprint, tools, range, global brand
recognition and relationships to continue to benefit from and drive
this trend forward.
Fever-Tree Team
This year more than ever, our priority has been our close-knit
team, who are integral to the success of the business. Despite the
impacts of the pandemic, we did not furlough any team members and
instead focused on redeploying talent around the business to
provide job security when it was needed most.
We have continued to add capabilities to our global team with a
number of hires this year including the appointment of a Chief
Marketing Officer, as well as the successful integration of the
team we acquired from GDP.
While we have continued to grow, we remain entrepreneurial at
heart and work hard to ensure we have a culture that enables all
our team, regardless of location, department or level to feel they
can make a real difference to the business. This year the rise of
virtual working has enabled us to be connected across all our
regions more than ever before. The fast adoption of various virtual
platforms and the willingness to remain connected across
departments and locations to make the progress we have this year is
a testament to everyone in the business.
The last 12 months has also seen my co-founder Charles Rolls
step down from the Board. It really has been a fantastic experience
and an enormous amount of fun working with and building the
business alongside Charles. He is undoubtedly a great entrepreneur,
with his success in breathing life into the premium gin category
with Plymouth Gin and then of course Fever-Tree, so Gin & Tonic
drinkers around the world owe him a great debt of gratitude.
I will certainly miss working alongside him, and we look forward
to providing him with a proper Fever-Tree send off when the
circumstances allow.
Sustainability
We are conscious of ensuring we take decisions and act in a way
that is beneficial to the natural environment and the wider
community, driving positive, long-term impact.
Our pioneering spirit ensures we are continually challenging
ourselves to find ever more sustainable ways to produce our
products. Whether through working even closer with our partners
throughout our supply chain, protecting biodiversity in places not
only where we source from but where we live and work, to exploring
future-proof carbon reduction solutions, we are determined that
Fever-Tree continues to put sustainability at the forefront of our
decision making.
The last 12 months has brought this into even sharper focus for
me and the wider team. We recognise we have a responsibility to
protect our planet and need to match our words with action. The
last year has seen us establish a clear framework for our
sustainability initiatives focused on five branches of Climate,
Circular Economy, Conservation, Communities and Colleagues. These
branches guide our approach and ensure all our teams have
sustainability considerations as part of their overall decision
making and strategy.
As a senior team, we are extremely excited about the initiatives
that are underway. We have a strong direction of travel in this
area, and I look forward to talking in much more detail about them
in the coming months.
Summary & Outlook
Although 2020 presented many unforeseen challenges, Fever-Tree
has continued to strengthen its global leadership position and we
remain confident in our ability to deliver long-term sustainable
growth.
Our performance in the Off-Trade has been strong, exceeding our
expectations across all our regions. Numerous periods of lockdown
during the year encouraged increased consumer interest and
excitement about mixing drinks at home, attracting more households
to the Fever-Tree brand than ever before. Consequently, we have
increased our penetration in the UK, consolidated our number one
position, and driven value share gains in the US, Europe, and as
far afield as Canada and Australia.
Despite the restrictions and closures that impacted the On-Trade
for a large proportion of the year, we have continued to support
our On-Trade partners across our regions and are well positioned as
this important channel gradually recovers.
Our resilient performance can also be attributed to the
proactive and rapid actions taken by the business. For example, we
worked quickly to increase contingency stocks of our key
ingredients, upweighted marketing spend to focus on at-home
consumption, rolled out larger pack sizes as consumers started to
buy in bulk, and invested in online retail platforms to drive
growth in this increasingly significant channel.
The strong and secure financial position of the Group has
enabled us to remain focused on the long-term opportunity, continue
to invest and make strategic progress. We launched new premium
mixers, such as our Premium Sodas in the UK and our Sparkling Pink
Grapefruit in the US, as well as acquiring our sales agent in
Germany, and began production with our US bottling partner.
Uncertainty remains going into 2021, and the impact of the
pandemic on 2021 performance is difficult to predict. However, the
progress of the various vaccine rollouts has given the world hope
there is a way through this crisis. Consequently, on the assumption
that the vaccines continue to rollout as planned for the rest of
the year, we expect to see a gradual recovery of the On-Trade as
2021 progresses, benefitting all our regions. The Off-Trade is
likely to moderate as the On-Trade recovers, but we firmly believe
that we will continue to benefit from the progress we have made in
this channel across our regions in 2020.
The Group remains well-placed financially with a cash position
at year end of GBP143.1m and our asset light, outsourced business
model continues to ensure we have a low fixed cost base and the
flexibility to manage any future challenges.
Excitingly, the global long-term trend to premium spirits and
long mixed drinks continues and has even accelerated over the
course of the year, making us more confident than ever in the
opportunity ahead for the Group as we look beyond the current
period of disruption and uncertainty.
Finance review
2020 saw the Group respond swiftly and decisively to the
disruption and uncertainty caused by COVID-19, while also making
strategic progress.
The agility of our asset-light, outsourced business model
alongside the strong relationships we hold with our production
partners allowed us to navigate the challenges posed by the
pandemic. Our focused team and entrepreneurial culture allowed us
to quickly identify and capitalise on opportunities that arose from
the rapid shifts in consumer occasion and behaviour as they
unfolded. Our financial strength and our conviction in the global
premium mixer opportunity allowed us to continue to focus on our
strategy, to build our team, to invest behind the brand, and with
the acquisition of GDP, establish an operational footprint in a key
European market.
Despite the impact on our On-Trade revenues, our Off-Trade
performance was consistently strong across regions, resulting in
net revenues of GBP252.1m for the Group, a decline of 3% (2019:
GBP260.5m). As expected, the gross margin declined due to
investments in the US pricing architecture at the beginning of
2020, with a further impact felt from the shifts in channel and
regional mix resulting from the widespread On-Trade closures during
the year. Alongside this, the Group's continued investment and
increased level of underlying operating expenditure resulted in a
reduction in the adjusted EBITDA margin this year to 22.6% (2019:
29.6%). Whilst we remain committed to investing behind the
long-term opportunity, we anticipate that the gradual re-emergence
of the On-Trade will allow for margins to improve from these
levels.
We end the year with an improved cash position of GBP143.1m
(2019: GBP128.3m) and as a reflection of our confidence in the
financial strength of the Group, the Board is recommending a final
dividend of 15.68 pence per share, an increase of 4%
year-on-year.
Gross Margin
Gross margin of 46.2% represents a decline from the 50.5% gross
margin reported in 2019. Certain known factors, including the US
price optimisation implemented in the first half of this year were
expected to result in a gross margin for the Group in line with our
expectations of c.49% for the year. Three factors then further
impacted gross margin, bringing it to the reported level of
46.2%:
-- Net foreign currency headwinds impacted gross margin, most
notably from a weakening US dollar in the second half of the
year.
-- Following the acquisition of GDP we now consolidate the
revenue generated by the distribution of their non-Fever-Tree
portfolio brands. GDP's portfolio of premium brands provides
valuable synergies in a large but fragmented market and provides
incremental contribution to GDP's overheads; however, the portfolio
brand revenue generates a lower margin than the Group achieves on
sales of Fever-Tree products, and hence has a diluting impact on
the Group gross margin.
-- Most significantly, COVID-related closures in the On-Trade
impacted channel mix, especially in the UK, and also affected the
regional sales mix, as regions which are typically more Off-Trade
weighted and therefore less exposed to On-Trade closures increased
in the overall Group sales mix.
In the UK, the On-Trade channel reduced to 25% of UK sales in
2020 (2019: 51%), whilst the US, which performed strongly and is
naturally more Off-Trade weighted, increased to 23% of Group
revenue (2019: 18%). We would expect the impact on gross margin of
these shifts in channel and regional mix to gradually unwind as the
On-Trade reopens and recovers globally.
As we look further ahead, we expect the US to increase in the
regional sales mix given the scale of opportunity in that market.
The US currently operates at a lower percentage gross margin than
the rest of the Group due to the elevated logistics costs related
to transporting product from the UK to the US. The commencement of
production with a West Coast US bottling partner in December 2020
alongside the agreement to extend production to that partner's East
Coast facility later in 2021 is a significant step. Not only does
it ensure we are operationally underpinned with sufficient capacity
and agility to continue to service the US opportunity, but it will
also allow us to drive efficiencies in our US logistics costs as we
produce locally, and thus improve our US gross margin as the
opportunity scales in that market.
Operating expenditure
We continued to invest in the brand, our people, and our
capabilities through the course of 2020, leading to underlying
operating expenses increasing by 8.7% to GBP59.3m (2019: GBP54.5m).
As a result, underlying operating expenses increased to 23.5% of
Group revenue (2019: 20.9%).
As it became clear that the pandemic would impact our On-Trade
revenues globally in 2020, we took the decision to continue to
invest behind the brand, and proactively refocused our existing
marketing plans and budgets to where consumer demand was shifting.
This involved redeploying spend away from On-Trade and events
activities and towards the Off-Trade, whilst also upweighting our
digital and TV advertising spend in key markets.
In the UK, whilst our total marketing spend reduced, largely due
to the cancellation of the Fever-Tree Championship, we redeployed
an element of this spend to our first national television
advertising campaign, at a time early in the pandemic when
advantageous commercial rates were available to those brands still
willing to invest. We increased our marketing spend in key growth
markets, including the US, Australia and Canada, and notably
upweighted our digital spend in the US as we worked with Google as
part of their Brand Accelerator program. Whilst On-Trade and Events
marketing budgets were significantly reduced across our regions,
the redeployment of spend and continued investment in our growth
markets resulted in total marketing spend for the Group remaining
strong at 9.9% of Fever-Tree brand revenue (2019: 11.0%).
Staff costs and other overheads increased to GBP34.1m (2019:
GBP25.8m), representing 13.5% of Group revenue (2019: 9.9%). This
increase reflects a continued investment in our Global team as well
as the consolidation of GDP staff costs and other overheads in the
second half of the year.
We made the decision very early in the pandemic to not take any
form of government support and indeed continued to build capacity
and capability within the team as we invested in our people ahead
of the growth opportunity for the Group. In 2020 we focused on
building further capability in Group functions, with key hires in
the Innovation, Strategy, Finance and Quality Control teams, whilst
also adding to our regional teams, particularly in the US,
Australia and Canada.
We strengthened our Senior Leadership team with the appointment
of a Chief Marketing Officer and with the acquisition of GDP we
welcomed a further 51 people into the Fever-Tree team, in total
increasing our headcount by 86 in the year to 259. Whilst we have
increased headcount in recent years, we remain lean and,
importantly, agile, preserving the entrepreneurial culture which
has been central to the Group's success.
The decision to continue to invest in the brand and our people
has enabled the Group to make significant strategic progress during
the year. These investments were made firmly on the basis of our
financial strength and our conviction in the long-term opportunity;
however, due to the short-term impacts of COVID-19 on revenue and
gross margin, they have impacted our profitability in 2020. As a
result of the decline in gross margin and increase in underlying
operating expenditure the group generated adjusted EBITDA of
GBP57.0m, a 25.9% decline from 2019, at a margin of 22.6% (2019:
29.6%).
The acquisition of GDP resulted in the recognition of an GBP8.0m
intangible asset, which will be amortised over 10 years. This led
to an increased amortisation of GBP0.4m in the second half of the
year, bringing total amortisation costs to GBP1.1m (2019: GBP0.7m).
Depreciation charges increased to GBP2.7m (2019: GBP2.2m), largely
related to the reusable packaging system in Germany. Share based
payment charges were flat at GBP1.9m (2019: GBP1.9m).
As a result of the increases in amortisation and depreciation
charges, the 25.9% decline in adjusted EBITDA translates to a 28.8%
decrease in operating profit to GBP51.3m (2019: GBP72.2m). Net
finance income of GBP0.3m resulted in profit before tax of
GBP51.6m, a decrease of 28.9% (2019: GBP72.5m).
Tax
The effective tax rate in 2020 was 19.1% (2019: 19.3%) and was
in line with expectations.
Earnings Per Share
The basic earnings per share for the year are 35.86 pence (2019:
50.46 pence) and the diluted earnings per share for the year are
35.76 pence (2019: 50.26 pence).
In order to compare earnings per share year on year, earnings
have been adjusted to exclude amortisation and the UK statutory tax
rates have been applied (disregarding other tax adjusting items).
On this basis, normalised earnings per share for 2020 are 36.72
pence per share and for 2019 were 51.08 pence per share, a decrease
of 28.1%; for further detail see note 9 of the Consolidated
Financial Statements.
Working Capital
Trade and other receivables decreased by GBP4.8m during 2020 to
GBP56.0m (2019: GBP60.8m), following significant focus on credit
control throughout the year. During the initial period of lockdowns
in Spring 2020 we sought to balance the management of credit risk
with the need to support our customers and distribution partners.
We proactively extended terms with our On-Trade customers and our
network of international importers and worked closely on payment
plans, resulting in full collections of outstanding balances from
that period. We continued to apply this balanced approach between
risk and support as further periods of restrictions and lockdowns
were enacted as the year progressed.
Whilst a significant element of our debtor balance sits with
large UK retail and US distribution partners, we recognise that
credit risk remains elevated due to the on-going uncertainty.
However, our strong relationships, proactive approach and
appropriate levels of credit insurance position us well to continue
to manage the on-going credit risk.
Inventory levels increased by GBP17.9m to GBP38.7m (2019:
GBP20.8m) as the Group increased both raw material and finished
good inventory levels during the year, primarily to mitigate
potential disruption caused by COVID-19, and later in the year to
prepare for the UK's exit from the EU under a range of potential
scenarios, which subsequently has proceeded with minimal disruption
to our ability to produce in the UK or across our European bottling
and canning network.
Trade and other payables increased by GBP14.9m to GBP42.4m
(2019: GBP27.5m) which largely reflects an elevated level of
production in the latter months of 2020 compared to 2019 and the
consolidation of GDP balances.
As a result of the above movements, the impact of the increase
in inventory was offset by the reduction in receivables and
increase in payables and consequently, working capital reduced by
GBP1.8m to GBP52.3m (2019: GBP54.1m). Excluding non-cash movements,
working capital increased marginally, therefore cash generated from
operations declined to 95.8% of adjusted EBITDA (2019: 103.9%).
Capital Expenditure
Due to the structure of the Group's business model, capital
expenditure requirements remain low, with additions of GBP2.5m in
the year (2019: GBP6.4m). The additions in the year included
continued investment in reusable packaging in Germany, reflecting
the growth in that market.
Cash Position
The Group entered 2020 in a strong financial position;
debt-free, with GBP143.1m of cash on the balance sheet. This robust
platform underpinned our ability to invest and make strategic
progress in 2020 despite the uncertainty relating to COVID-19.
Whilst we increased our underlying operating expenditure by
8.7%, continued to pay progressive dividends and completed the
acquisition of GDP, year-end cash increased by 12% during the year
to GBP143.1m (2019: GBP128.3m). The increase in our cash position
is testament to our strong Off-Trade performance, efficient working
capital management and modest capital expenditure requirements and
ensures that we retain a strong financial position as we look ahead
to 2021.
The Group's Capital Allocation framework remains unchanged. We
intend to retain sufficient cash to allow for investment against
the global opportunity and see our strong cash position as a
competitive advantage over many of our premium mixer competitors
globally. We primarily foresee this investment taking the form of
operational expenditure, including upweighted marketing spend
across our growth regions at the appropriate stage, and we intend
to retain sufficient cash reserves to allow us to take advantage of
opportunities to upweight and accelerate investment as they arise.
Whilst not a priority or essential component of the Group's plans,
we also remain vigilant with regards to M&A opportunities that
would further assist with the delivery of our strategy, as
demonstrated by the acquisition of GDP this year. Where the Board
considers there to be surplus cash held on the Balance Sheet it
will consider additional distribution to shareholders.
Dividend
The Group remains committed to a progressive dividend policy and
as such, the Board is recommending a final dividend of 10.27 pence
per share in respect of 2020 (2019: 9.88 pence per share) bringing
the total dividend for the year to 15.68 pence per share (2019:
15.08 pence per share). If approved by shareholders at the AGM on
20 May 2021 the final dividend will be paid on 28 May 2021 to
shareholders on the register on 9 April 2021.
Performance Indicators
The Group monitors its performance through a number of key
indicators. These are formulated at Board meetings and reviewed at
both an operational and Board level.
Progress against these key indicators was closely monitored
during the year. Due to the disruption caused by the pandemic,
targeted performance was adjusted accordingly as the year
progressed. Whilst performance was down year on year, the final
revenue growth and adjusted EBITDA margin was ahead of the Board's
expectations.
Revenue growth %
Group revenue growth was -3.2% in 2020 (2019: +9.7%).
Gross margin %
The Group achieved a gross margin of 46.2% in 2020 (2019:
50.5%).
Adjusted EBITDA margin %
The Group achieved an adjusted EBITDA margin of 22.6% in 2020
(2019: 29.6%).
Fevertree Drinks plc
Consolidated statement of profit or loss and other comprehensive
income
For the year ended 31 December 2020
2020 2019
GBPm GBPm
Revenue 252.1 260.5
Cost of sales (135.8) (129.0)
Gross profit 116.3 131.5
Administrative expenses (65.0) (59.3)
Adjusted EBITDA 57.0 77.0
Depreciation (2.7) (2.2)
Amortisation (1.1) (0.7)
Share based payment charges (1.9) (1.9)
Operating profit 51.3 72.2
Finance costs
Finance income 0.5 0.5
Finance expense (0.2) (0.2)
Profit before tax 51.6 72.5
Tax expense (9.9) (14.0)
Profit for the year 41.7 58.5
Items that may be reclassified
to profit or loss
Foreign currency translation
difference of foreign operations (0.2) 0.1
Effective portion of cash flow
hedges 0.6 0.2
-------- --------
Total other comprehensive income 0.4 0.3
-------- --------
Total comprehensive income for
the year 42.1 58.8
-------- --------
Earnings per share
Basic (pence) 35.86 50.46
Diluted (pence) 35.76 50.26
Fevertree Drinks plc
Consolidated statement of financial position
At 31 December 2020 2020 2019
GBPm GBPm
Non-current assets
Property, plant and equipment 7.5 6.9
Intangible assets 48.8 41.0
Deferred tax asset 1.9 0.5
Other financial assets - 2.1
Total non-current assets 58.2 50.5
------- -------
Current assets
Inventories 38.7 20.8
Trade and other receivables 56.0 60.8
Derivative financial instruments 1.3 0.1
Corporation tax asset 1.1 -
Cash and cash equivalents 143.1 128.3
Total current assets 240.2 210.0
------- -------
Total assets 298.4 260.5
------- -------
Current liabilities
Trade and other payables (42.4) (27.5)
Loans and borrowings (0.1) -
Corporation tax liability - (5.1)
Deferred tax liability (1.5) -
Lease liabilities (0.7) (0.6)
------- -------
Total current liabilities (44.7) (33.2)
------- -------
Non-current liabilities
Lease liabilities (1.1) (1.2)
Total non-current liabilities (1.1) (1.2)
------- -------
Total liabilities (45.8) (34.4)
------- -------
Net assets 252.6 226.1
------- -------
Equity attributable to equity
holders of the company
Share capital 0.3 0.3
Share premium 54.8 54.8
Capital redemption reserve 0.1 0.1
Cash flow hedge reserve 0.8 0.2
Translation reserve (0.2) -
Retained earnings 196.8 170.7
------- -------
Total equity 252.6 226.1
------- -------
Fevertree Drinks plc
Consolidated statement of cash flows
For the year ended 31 December 2020
2020 2019
GBPm GBPm
Operating activities
Profit before tax 51.6 72.5
Finance expense 0.2 0.2
Finance income (0.5) (0.5)
Depreciation of property, plant and equipment 2.7 2.2
Amortisation of intangible assets 1.1 0.7
Share based payments 1.9 1.9
57.0 77.0
Decrease/(Increase) in trade and other receivables 4.0 1.3
Decrease/(Increase) in inventories (17.2) 5.7
(Decrease)/Increase in trade and other payables 10.8 (4.0)
------- -------
(2.4) 3.0
------- -------
Cash generated from operations 54.6 80.0
------- -------
Income taxes paid (16.5) (12.0)
------- -------
Net cash flows from operating activities 38.1 68.0
------- -------
Investing activities
Purchase of property, plant and equipment (2.6) (2.6)
Interest received 0.5 0.5
Acquisition of subsidiary, net of cash acquired (1.7) -
Net cash used in investing activities (3.8) (2.1)
------- -------
Financing activities
Interest paid (0.2) (0.2)
Issue of shares - -
Dividends paid (17.8) (18.0)
Repayment of loan (0.9) (6.1)
Issue of other financial assets - (2.2)
Payment of lease liabilities (0.7) (0.5)
------- -------
Net cash used in financing activities (19.6) (27.0)
------- -------
Net increase in cash and cash equivalents 14.7 38.9
Cash and cash equivalents at beginning of period 128.3 89.7
------- -------
Effect of movements in exchange rates on cash held 0.1 (0.3)
Cash and cash equivalents at end of period 143.1 128.3
------- -------
1. Basis of Preparation
The financial information contained in this results announcement
has been prepared on the basis of the accounting policies set out
in the statutory financial statements for the year ended 31
December 2019. Whilst the financial information included in this
announcement has been computed in accordance with the recognition
and measurement requirements of IFRS, as adopted by the European
Union, this announcement does not itself contain sufficient
disclosures to comply with IFRS.
The financial information set out above does not constitute the
company's statutory accounts for 2020 or 2019. Statutory accounts
for the years ended 31 December 2020 and 31 December 2019 have been
reported on by the Independent Auditor. The Independent Auditor's
Report on the Annual Report and Financial Statements for 2020 and
2019 was unqualified, did not draw attention to any matters by way
of emphasis, and did not contain a statement under 498(2) or 498(3)
of the Companies Act 2006. Statutory accounts for the year ended 31
December 2019 have been filed with the Registrar of Companies. The
statutory accounts for the year ended 31 December 2020 will be
delivered to the Registrar in due course.
2. Revenue
An analysis of turnover by geographical market is given below:
2020 2019
GBPm GBPm
United Kingdom 103.3 132.7
United States of America 58.5 47.6
Europe 65.3 64.4
Rest of the World 25.0 15.8
252.1 260.5
====== ======
3. Earnings per share
2020 2019
GBPm GBPm
Profit
Profit used in calculating basic and diluted EPS 41.7 58.5
Number of shares
Weighted average number of shares for the purpose of
basic earnings per share 116,277,921 116,126,293
Weighted average number of dilutive employee share options outstanding 335,590 448,508
------------ ------------
Weighted average number of shares for the purpose of
diluted earnings per share 116,613,511 116,574,801
------------ ------------
Basic earnings per share (pence) 35.86 50.46
------------ ------------
Diluted earnings per share (pence) 35.76 50.26
------------ ------------
4. Dividends
In the financial year ended 31 December 2020 dividends were paid
with a value of GBP17,777,192 (being GBP11,473,762 at 9.88 pence
per share in respect of the year ended 31 December 2019, and
GBP6,303,430 at 5.41 pence per share in respect of the six months
ended 30 June 2020). Dividends of GBP17,976,649 (15.48 pence per
share) were paid in the prior year. The Directors are proposing a
final dividend of 10.27 pence per share - GBP11,966,441. This
dividend has not been accrued in the consolidated statement of
financial position.
[1] IRI 13 weeks to 27 December 2020
[2] Kantar rolling 12 weeks, 12(th) July - 27(th) December 2020
[3] FY20 includes GBP6.4 million revenue from GDP's portfolio brands
[4] Adjusted EBITDA is earnings before interest, tax,
depreciation, amortisation, share based payment charges and finance
costs
[5] Kantar
[6] IRI 13 weeks to 27 December 2020
[7] IRI 52 weeks to 27 December 2020
[8] CGA
[9] Nielsen
[10] IRI
[11] Australian retail scanner data and Fever-Tree analysis
[12] Nielsen 52 weeks to 26 Dec 2020 (Only includes the c.10% of
the Ginger Ale category that's consumed mixed)
[13] IWSR and Euromonitor
[14] IWSR
[15] Numerator
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