Fevertree blames British weather for revenue guidance cut

Premium tonics supplier Fevertree Drinks (FEVR) concocted a very mixed set of half-year results. The company delivered its highest ever market share by value in the UK, boosted sales by 40 per cent in the US, and raised its cash profit margin guidance for next year above the market consensus to 15 per cent. But full-year revenue guidance was cut from a range of £390mn-£405mn down to £380mn-£390mn, which management pinned on “the vagaries of the British summer weather” and its change in Australian distribution model. And the huge slide in pre-tax profits was driven by continuing cost headaches as the asset-light business model remains under pressure in this high-inflation environment.