Fever-Tree has posted a year-on-year revenue jump of 2% at constant currency in its first half to reach £171m, despite a slowdown in its UK revenue.

The drinks company’s UK revenue declined by 6% in H1, however, to total £48.1m.

Fever-Tree, announcing its figures for the six months to 30 June, also reported that its adjusted earnings across the group increased 1% to £18.4m, with margins increasing by 20 basis points to 10.7%.

The group said a combination of strong cash flow in addition to transaction inflows from its Molson Coors partnership had “significantly enhanced” its cash position to £130m, an increase of 97%. As a result, Fever-Tree said its brand momentum in the US had remained strong, with retail sales growth outpacing the market across every sub-category.

“The announcement, in January, of our strategic partnership with Molson Coors was a moment of real significance for Fever-Tree, establishing the ideal platform to maximise our brand strength and future potential in what is our biggest growth opportunity,” CEO and co-founder of Fever-Tree, Tim Warrillow, commented.

“The transition of the business to Molson Coors is progressing well and despite the complexity of such a transition, it has been particularly encouraging to see the underlying US momentum has been maintained, a real testament to the hard work of both teams as well as the strength of the Fever-Tree brand.”

On Fever-Tree’s UK performance, Warrillow added: “The wider on-trade category continues to face challenges, but our off-trade performance has remained robust.

“Importantly, more than half of the 3.6 million UK households that buy Fever-Tree are now also purchasing products from our broader portfolio such as our ginger beer or premium soft drinks, a clear sign that our diversification strategy is resonating with consumers and broadening the occasions in which our brand is enjoyed.”

Fever-Tree also revealed it had made a “good start” to the H2 period across and that it was comfortable with the company’s full year market expectations.

Following the announcement, Fever-Tree’s share price increased by over 12% in today’s trading.

“With the operational progress we are making and the strong performance we have seen over the summer months, we are well placed for both the second half of the year and to capture the long-term opportunities ahead,” added Warrillow.

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