As a reflection of their confidence in the financial strength of the Fevertree Group, the Directors declared an interim dividend of 5.41 pence per share, 4% ahead of the 2019 interim dividend. The dividend will be paid on 16 October 2020, to shareholders on the register on 25 September 2020.
Other financial highlights include:
Resilient revenue performance of £104.2 million in the first half, a decrease of 11% year-on-year
Gross profit margin was impacted by COVID-related shift in channel and regional sales mix, and the US price optimisation. Excluding COVID-19 impacts, gross margin for the first half would have been c.49.0%
Despite the short-term disruption of COVID-19, they continue to upweight investment in marketing and their team to support the long-term opportunity across all regions, maintaining previously budgeted underlying operating costs of c.£60 million for the full year
This increased investment and the impacts of COVID-19 on revenue and gross margin impacted the Adjusted EBITDA margin in the first half but they remain confident that continuing to invest in their people and brand will position them strongly as emerging from the current period of uncertainty
Asset light business model continues to support the Group's secure financial position with net cash improving to £136.9 million at period end