Fevertree Drinks posts strong interim results, full-year outlook in line

27th Jul 2015 11:59

(ShareCast News) - Upmarket drinks company Fever-Tree saw its half-year profits and revenues jump thanks to strong growth in its US and Europe businesses.Pre-tax profits rose to £6.59m from £1.13m during the first six months to 30 June 2015.The group's revenues jumped 62% to £24.1m driven by strong growth in the UK (62%) thanks to a good performance in its on-trade and off-trade.The US business reported a 69% increase in revenues thanks to a rise in popularity of its premium gin ad tonic products.Furthermore, revenues in Europe rose 61% and 77% when adjusted for the weakening Euro driven by importers taking large orders in June.Chief executive Tim Warrillow said: "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."Investec raised its target price to 395p from 320p following the "impressive" growth and said "peer multiples fail to adequately reflect the superior growth we expect to see from Fever-Tree". It added, however, it expects a slower rate of progress during the second-half.Shares were up 0.82% to 369p on Monday at 11:26.