Fevertree Drinks (FEVR) H1 2026 earnings summary

Executive summary

• Achieved 8% brand revenue growth at constant currency, with all key regions contributing positively; US revenue up 11%, Europe up 10%, UK up 3%, and Rest of World up 5% year-over-year.

• Market share gains outpaced the wider mixed category and competitors, with the US partnership with Molson Coors delivering record value share in Tonic and Ginger Beer and accelerating sales momentum.

• Diversification strategy advanced, with non-tonic/beyond-Tonic products now representing 47% of group sales and up 13%.

• Asset-light model and strong cash generation support investment, shareholder returns, and a £60m share buyback in progress, following £100m in FY25.

• US remains the largest long-term growth opportunity, with the Molson Coors partnership driving distribution, marketing scale, and a transition to a royalty income model.

Financial highlights

• Adjusted revenue rose 7% year-over-year to £184.2m; adjusted EBITDA increased 9% to £20.1m, with margin up 20bps to 10.9%.

• Normalised EPS up 5% to 11.00p; diluted EPS up 38% to 9.44p.

• Operating cash flow conversion at 90%; net cash position at £68m at H1 end.

• Share buyback program extended by £60m, totaling £160m returned over two years and reducing share count by ~7%.

• Interim dividend increased 2% to 6.09p per share.

Outlook and guidance

• Confident in delivering full-year results in line with expectations; FY26 outlook unchanged and in line with market consensus.

• US revenue growth expected to accelerate in H2, with tariff rebates and local production to benefit profitability and cash flow by 2027-2028.

• EBITDA expected to see a circa 60% uplift over the next two years, underpinned by a US profit guarantee.

• At least £100m free cash flow expected across 2027 and 2028.

• Margin improvement expected across Rest of Group and Central, despite EPR provision.