Fevertree Drinks (FEVR) H2 2024 earnings summary

Executive summary

• Achieved 4% constant currency revenue growth and 66% increase in Adjusted EBITDA, driven by margin recovery, working capital optimization, and strong brand momentum.

• Entered a transformational partnership with Molson Coors in the U.S., providing guaranteed profits, lower working capital needs, and significant growth potential.

• Expanded share buyback program to GBP 100 million for the year, reflecting strong cash generation and confidence in future prospects.

• Continued to gain market share in key regions, with double-digit U.S. growth and strong performance in Australia and Canada.

• Maintains #1 premium mixer brand status globally, with strong innovation and distribution capabilities.

Financial highlights

• FY24 brand revenue reached £364.0m, up 4% at constant currency; total group revenue was £368.5m, up 3% at constant currency.

• Adjusted EBITDA increased 66% to £50.7m (margin 13.7%, +530bps YoY); operating profit up 57% to £32.8m.

• Gross margin improved to 37.5% (+540bps YoY) due to lower glass and freight costs, pricing actions, and operational efficiencies.

• Operating cash flow conversion reached 150%, with net cash up 60% to £96.0m.

• Final dividend recommended to increase by 2% to 16.97p per share.

Outlook and guidance

• 2025 guidance: low single-digit group revenue growth, with short-term EBITDA impact due to US transition.

• 2026: double-digit group revenue and EBITDA growth expected as US marketing spend normalizes.

• From 2027, uplift in group revenue and EBITDA anticipated as Molson Coors partnership benefits are fully realized, underpinned by guaranteed royalty fees.

• Ongoing focus on margin improvement, procurement efficiency, and technical optimization.

• US profit trajectory de-risked by guaranteed profit element from Molson Coors for 2026–2030.