Fever-Tree Drinks' half-year profit rises on favourable weather
Fever-Tree Drinks' half-year profit rises on favourable weather Sept 10 (Reuters) - Britain's Fever-Tree Drinks FEVR.L posted a 9% rise in first-half adjusted core profit on Thursday after its UK business returned to growth and a hot summer boosted demand for its ginger beers and Mexican lime sodas.
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Fever-Tree has also locked in input costs years ahead, saying it was substantially hedged on glass and aluminium costs through 2026 to shield margins from geopolitical shocks.
It has also hedged other commodity requirements substantially into 2028.
The group, which has transferred some U.S. tariff risk to partner Molson Coors TAP.N, has also begun receiving tariff refunds.
It expects the refunds to boost profitability in its U.S. segment in the second half.
In the U.S., its largest market, half-yearly adjusted core profit fell 18%, as it spent heavily on marketing, despite an 11% rise in revenue at constant currency.
UK revenue returned to growth, up 3%, helped by strong demand, market share gains and favourable summer weather.
The group reported adjusted core profit of £20.1 million ($27.24 million) for the period, compared with £18.4 million a year earlier.
The company said it has continued to trade well through the summer and is confident it will meet market expectations for the full year.
($1 = 0.7378 pound)
(Reporting by Nithyashree R B in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich)