LONDON: British drinks maker Fever-Tree reported a 9% increase in first-half adjusted core profit, helped by a return to growth in its UK business and strong summer demand for its ginger beers and Mexican lime sodas.
The company reported adjusted core profit of £20.1 million ($27.24 million) for the first half, up from £18.4 million a year earlier.
UK revenue increased 3%, supported by strong consumer demand, market-share gains and favourable summer weather. Fever-Tree said trading remained strong through the summer and that it was confident of meeting full-year market expectations.
How did Fever-Tree perform in the US?
The United States remained Fever-Tree’s largest market, but adjusted core profit there fell 18% during the first half as the company increased spending on marketing.
US revenue nevertheless rose 11% on a constant-currency basis. The company expects tariff refunds to improve profitability in its US business during the second half.
Fever-Tree has also transferred some US tariff exposure to its partner Molson Coors and has begun receiving tariff refunds.
How is Fever-Tree protecting its profit margins?
The company said it has substantially hedged its glass and aluminium costs through 2026, helping protect margins from geopolitical and commodity-related shocks. Other commodity requirements have also been substantially hedged into 2028.
The measures are intended to provide greater cost certainty as the company manages geopolitical risks, tariffs and fluctuations in raw material prices.