Fevertree Regulatory News (FEVR)

27th July 2015

Fevertree Drinks plc ("Fever-Tree")

Interim Results

Fever-Tree, the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, today announces its Interim Results for the period ended 30 June 2015.

Financial Highlights:

· Revenue up 62% to £24.1m (H1 2014: £14.9m)

· Gross margin of 50.5% (H1 2014: 51.1%)

· Adjusted EBITDA1 up 68% to £7.2m (H1 2014: £4.3m)

· Strong balance sheet with net cash at period end of £7.9m

· Diluted EPS of 4.44 pence

· Interim dividend of 0.78 pence per share

Operational Highlights:

· New UK Off-Trade listing in Morrisons

· Continued strong growth in Ginger Beer sales in USA

· Launch of the new 150ml can format

Tim Warrillow, CEO of Fever-Tree said:

"We are delighted to report that the Group's strong performance throughout 2014 has continued into the first half of 2015. We achieved a 62% increase in revenue with all four of our territories continuing to perform strongly and the results were underpinned by solidly maintained margins and a strong balance sheet.

The Group remains ideally positioned to benefit from the ongoing global trend to greater premiumisation and look to the future with confidence as we continue to deepen our penetration in our existing markets whilst exploring new market opportunities."

1 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, exceptional items and finance costs

For further information:

Notes to Editors:

Fever-Tree is the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, with distribution to approximately 50 countries worldwide. Based in the UK, the brand was launched in 2005 to provide high quality mixers which could cater to the growing demand for premium spirits, in particular gin, but also increasingly for vodka, rum and whisky. The Company now sells a range of carbonated mixers to hotels, restaurants, bars and cafes ("On Trade") as well as selected retail outlets ("Off Trade"). Approximately 70 per cent of the Group's sales were derived from outside of the UK in financial year 2014, with key overseas markets in the US and Europe.

Chief Executive's report

I am delighted to report that the Group's strong performance in 2014 has continued in the first half of 2015. During the period we achieved revenue of £24.1m, representing growth of 62% on the first half of 2014.

Despite some net forex headwinds, our gross profit margin has been maintained at 50.5% (2014: 51.1%) and the Group achieved an adjusted EBITDA of £7.2m in the first half of the year, generating diluted earnings per share of 4.44p. We begin the second half of 2015 with a strong balance sheet and net cash of £7.9m.

Results

2 Calculation based on pre-IPO structure, see notes to the financials

Territory review

Revenue by territory

UK

In our largest market, the Group achieved sales growth of 62%, with strong performance in both the On-Trade and Off-Trade, although this result was accentuated by certain customers building inventory in June in advance of the summer season. In the first half of 2015 we increased investment in the On-Trade sales team and achieved some notable new listings. In the Off-Trade we also gained a listing with Morrisons. Our new tonic and naturally light tonic in 150ml can format was launched in Sainsbury's at the very end of June, in Waitrose in July and was soon followed by an exclusive listing in British Airways First Class and Club World cabins as well as lounges throughout the UK.

USA

The strong momentum from 2014 has continued, with revenue growth of 69% in the period, which represented growth of 54% when adjusted for the strengthening US dollar. The "Moscow Mule" trend continued to drive growth in Ginger Beer sales in the first half of the year although growth across the Tonic flavours is also notable reflecting the rise in popularity of a premium gin and tonic in the region.

Europe

Revenue growth of 61% was achieved in the period, which represented growth of 77% when adjusted for the weakening Euro. Whilst this strong result was aided by certain importers taking large orders in June in advance of the summer season, growth continues to be underpinned by the strong performance seen in 2014 across many western European countries which has continued into the first half of 2015.

RoW

Sales to countries within the RoW region have grown by 42% and the Group has added dedicated resource to take advantage of opportunities in Asia Pacific and Latin America.

Financial

Gross margin and operating expenses

Gross margin of 50.5% in the period represents a decrease from the 51.1% achieved in the first half of 2014. The main driver of this decrease was the weakening Euro, although this has been partially offset by the impact of the strengthening Dollar, as well as product cost and logistics efficiencies.

Underlying operating expenses1 decreased as a proportion of revenue to 20.4% during the period (2014: 22.3%), which has improved the EBITDA margin to 29.9% (2014: 28.9%). For the current period underlying operating expenses include an incremental £0.4m unrealised gain made on outstanding forward exchange contracts at June 2015. Disregarding this £0.4m unrealised gain, the level of other underlying operating expenses is comparable to the prior period at 22.2% of revenue (2014: 22.3%).

Cash position and working capital

The Group had net cash of £7.9m at period end, with £14.0m of cash at the bank offset by £6.1m of bank loans. Adjusted operating cash flow in the period is strong at 83% of adjusted EBITDA, albeit this conversion rate is influenced by seasonality and is expected to return to levels seen historically as we progress through 2015.

Dividend

Reflecting the Board's continued confidence in the outlook, the Directors are pleased to declare an interim dividend of 0.78 pence per share. The dividend will be paid on 4 September 2015, to shareholders on the register on 14 August 2015.

Outlook

We are encouraged by our performance in the first half of the year and the Board remains positive about the outlook for 2015.

__________________

Tim Warrillow

Chief Executive

Consolidated statement of comprehensive income

For the six months ended 30 June 2015

* Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, exceptional items and finance costs

Consolidated statement of financial position

30 June 2015

Consolidated statement of cash flows

For the six months ended 30 June 2015

Notes to the consolidated financial statements

For the six months ended 30 June 2015

1. Basis for preparation

The interim financial statements have been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRS) and IFRIC interpretations issued by the International Accounting Standards Board (IASB) adopted by the European Union.

The accounts have been prepared in accordance with accounting policies that are consistent with the December 2014 Report and Accounts and that are expected to be applied in the Report and Accounts of the year ended 31 December 2015. There are new or revised standards or interpretations that apply to the period beginning 1 January 2015 but they do not have a material effect on the financial statements for the period ended 30 June 2015.

This report is not prepared in accordance with IAS 34, which is not mandatory. The financial information does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. Statutory accounts for Fevertree Drinks Plc for the year ended 31 December 2014 have been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

2. Revenue

An analysis of turnover by geographical market is given below:

3. Dividends

The interim dividend of 0.78p will be paid on 4 September 2015 to shareholders on the register on 14 August 2015.

4. Earnings Per Share