Fevertree Drinks (FEVR) H1 2025 earnings summary

Executive summary

• Product diversification and strong brand momentum are driving growth across all major regions, with significant expansion beyond tonic water and broadening consumption occasions.

• The transformational partnership with Molson Coors in the US is progressing well, enhancing distribution, marketing, and operational efficiency, and providing exclusive US rights.

• Robust financial performance is underpinned by strong cash generation, a £30m share buyback extension into 2026, and comfort with full-year market expectations.

• Product diversification, especially ginger beer and premium soft drinks, now represents up to 45% of group revenues and is deepening consumer relevance.

• Full-year expectations remain unchanged, with a robust start to the second half and positive momentum across all regions.

Financial highlights

• Adjusted revenue for H1 FY25 was £172.2m, up 12% at constant currency; US segment revenue grew 6%, UK declined 6%, Europe was flat, and Rest of World grew 17%.

• Adjusted EBITDA was £18.4m, up 1% year-over-year, with a margin of 10.7%, and Rest of Group segment achieved a 23.8% margin, up 540bps.

• Cash position increased to £130m, up 67% year-over-year, supporting an expanded share buyback program.

• Working capital reduced to 16.7% of adjusted revenue, aiding strong cash generation.

• Diluted EPS increased 5% to 6.82p; interim dividend up 2% to 5.97p per share.

Outlook and guidance

• Revenue guidance for the year remains unchanged, with low single-digit adjusted revenue growth expected and short-term EBITDA impact from the US transition.

• H2 EBITDA margin expected to benefit from central cost leverage, with US transition and FX headwinds to continue.

• Confident in medium-term strong revenue and EBITDA growth, driven by US acceleration and operational efficiencies from the Molson Coors partnership.

• UK and Europe expected to return to growth as tonic category stabilizes and portfolio diversification scales.

• Continued focus on product diversification and operational improvements to drive long-term growth.