𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Soft drink and mixer maker Fever-Tree has revealed stronger sales for the first half of the year amid a boost from the summer heatwaves in the UK.

Nevertheless, shares in the company slipped in early trading as profitability narrowed in the US.

The London-listed drinks firm revealed that total adjusted revenues grew by 7% to £184.2 million for the six months to June 30, compared with a year earlier.

Boss and co-founder Tim Warrillow said the performance represented “strong progress” for the business.

It came as US sales lifted by 7% year-on-year to £66.9 million as it benefited from increased scale linked to its partnership with Molson Coors.

Meanwhile, European revenues increased by 13%, driven by “good” performances in France and Switzerland.

Bosses said it was also “encouraging” that the group’s UK operation returned to growth for the half-year.

UK sales increased by 3% for the half-year, supported by growth in its off-trade business, which covers products sold in retailers such as supermarkets.

Fever-Tree said UK trading was also buoyed by “favourable” hot summer weather.

Demand for tonic was flat in the UK, with revenue growth led by a 10% jump in ginger beer sales, amid an increase in demand as both a mixer and a soft drink on its own.

Meanwhile, group pre-tax profits increased to £14.6 million for the six-month period, compared with £11.2 million a year earlier.

Mr Warrillow added: “We have continued to trade well through the summer and are confident in delivering market expectations for the full year.

“Our diversification strategy is expanding the opportunity for the brand, while our increasingly cash-generative business model allows us to invest behind future growth and deliver attractive returns to shareholders.”