(Sharecast News) - Fevertree Drinks reported a mixed set of results for 2023 on Tuesday, with UK revenue down 1% to £114.8m, while US revenue jumped 22% to reach £117m.
The AIM-traded firm said that within Europe, Fever-Tree brand revenue amounted to £94.6m, up 6%, while total revenue for Europe stood at £105.4m, 4% higher year-on-year.
However, revenue from the rest of the world declined 14%, to £27.2m, meaning overall, Fevertree saw 6% rise in total revenue, reaching £364.4m for the year.
Gross profit experienced a slight decrease of 2% to £117m, with the gross margin standing at 32.1%, down by 240 basis points.
Adjusted EBITDA decreased 23% to £30.5m, with the adjusted EBITDA margin dropping to 8.4%, down 320 basis points.
Diluted earnings per share saw a decline of 38% to 13.18p, while the board hiked the ordinary dividend by 2%, to 16.64p per share.
Net cash decreased 37% to end the year at £59.9m.
Looking ahead, Fevertree said it was confident in its performance, stating that it had started 2024 in line with expectations and remained on track to double EBITDA by the end of the year.
"2023 was a year when the Fever-Tree brand once again grew in breadth and depth, with market share gains across the globe," said co-founder and chief executive officer Tim Warrillow.
"Perhaps the most significant milestone was establishing the US as our largest region, and with it, extending our market leadership position in both the US tonic water and ginger beer categories.
"The G&T of course remains an integral growth driver for the group, but 2023 was a year where we saw a step change in our non-tonic portfolio."
Warrillow said the company's gingers and sodas continued to see strong growth, adding that the last 12 months saw the launch of its range of cocktail mixers alongside the roll out of its adult soft drink range in the UK.
"Taken alongside softening inflationary pressures, the operational efficiencies we are delivering means I am confident that we are entering 2024 in a very strong position from an operational perspective and have an excellent platform for strong profitable growth going forward."
At 1343 GMT, shares in Fevertree Drinks were up 8.39% at 1,166.32p.
Reporting by Josh White for Sharecast.com.
Fevertree (FEVR)