US growth underpins Fevertree's full-year results
By Josh White
Date: Tuesday 25 Mar 2025
(Sharecast News) - Fevertree Drinks delivered a solid financial performance for the year ended 31 December, it reported on Tuesday, with a sharp recovery in profitability and strengthened US growth setting the stage for medium-term expansion.
The AIM-traded mixers maker said group revenue rose 1% to £368.5m, or 3% on a constant currency basis, driven by a strong second half that saw Fever-Tree brand revenue growth accelerate to 7%, resulting in full-year brand growth of 4%.
It said the US was the group's standout performer, with constant currency revenue growth of 12% and further value share gains in key categories, including ginger beer and tonic water, where Fever-Tree now held 32% and 27% share, respectively.
UK revenue declined 3% against a challenging retail backdrop, while European brand revenue was flat in constant currency.
The rest-of-world segment grew 22% on a constant currency basis.
Fevertree said its gross margin improved by 540 basis points to 37.5%, supporting a 66% rise in adjusted EBITDA to £50.7m, with adjusted EBITDA margin increasing to 13.7%.
Diluted earnings per share rose 58% to 20.85p, while normalised earnings per share increased 82% to 28.01p.
Net cash rose 60% to £96m, driven by working capital improvements.
The board proposed a final dividend of 11.12p, taking the full-year ordinary dividend to 16.97p, up 2%.
Fevertree also announced an extension to its share buyback programme, increasing the total allocation to £100m over the 2025 financial year.
In January, the company entered a long-term strategic partnership with beer giant Molson Coors in the US, granting the latter exclusive rights to sell, distribute and produce Fever-Tree products in the country.
Fevertree said it retained full control over its brand identity and product development.
The partnership was expected to accelerate US growth, improve operational efficiencies and support the onshoring of production, while also benefiting from increased marketing investment.
While 2025 would be a transition year for the US business, Fevertree reaffirmed guidance for low single-digit group revenue growth and an adjusted EBITDA margin of approximately 12%.
The firm said it remained confident in its medium-term outlook, underpinned by ongoing margin recovery, innovation and the growth potential of its non-tonic range, which now accounted for around 45% of global sales.
"The Fever-Tree brand performed well in 2024, despite the subdued consumer environment," said co-founder and chief executive officer Tim Warrillow.
"Across every key region, we are gaining market share, with more consumers discovering, enjoying, and becoming loyal to Fever-Tree each year across a growing variety of drinking occasions.
"This was particularly noticeable in our largest region, the US, where once again the brand grew strongly and well ahead of the market."
Warrillow said the company's growing market share was still being driven by the company's "deep understanding" of global drinking trends, allowing it to make the most of evolving consumer preferences.
"As a result, non-tonic products now make up 45% of our global revenues, driven by the success of our ginger beer and our expanding position in cocktail mixers and adult soft drinks.
"Looking to the future, our focus remains on unlocking Fever-Tree's long-term potential across the world and capitalising on the unique position the brand has established sitting across alcohol and non-alcohol occasions.
"A landmark moment in this journey came just after year-end with the announcement of our most significant strategic step to date - a transformative partnership with Molson Coors in the US."
That collaboration, Tim Warrillow said, marked a "step change" for the firm's presence in the world's largest premium drinks market.
"Molson Coors' powerful network of US distributors across both on and off-trade, combined with their dedicated, national salesforce and deep customer relationships creates the ideal platform to maximise our brand strength and future potential across both alcohol and non-alcoholic occasions."
At 0915 GMT, shares in Fevertree Drinks were up 4.7% at 780p.
Reporting by Josh White for Sharecast.com.
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