Fevertree Drinks (FEVR) Trading Update summary

Trading performance and outlook

• Trading remains in line with expectations, with strong US momentum following the Molson Coors partnership and consensus for low revenue growth and ~12% adjusted EBITDA margin for FY25.

• US market growth is supported by the transition to Molson Coors' distribution, with both companies aligned on significant future opportunities.

• UK leadership is maintained across both on-trade and off-trade channels, leveraging brand strength and portfolio diversity to capture growth in alcoholic and non-alcoholic segments.

• European markets show good momentum, especially in the Netherlands, though Germany remains muted; Ginger Beer drives broader consumption occasions.

• Local production in Australia has commenced, supporting market share growth in the Rest of World region.

Strategic partnership and operational updates

• The Molson Coors partnership is progressing well, with the transition of US distribution on track and expected to benefit from Molson Coors' scale and supply chain.

• A new 10% US tariff on UK imports will be shared equally with Molson Coors, with mitigation strategies in place, including on-shoring US production and a profit guarantee mechanism.

• Charles Gibb steps down as US CEO, succeeded by Judd Hausner, who brings extensive experience in the US beverage sector.

Capital allocation and share buyback

• Share buyback program of £71 million initiated in February 2025, extended by £20 million, with £42.5 million returned as of 30 May 2025; remainder to be returned over the year.

• Strong balance sheet and improved cash flow prospects support continued investment in operations and marketing, with surplus cash to be returned to shareholders.

• M&A opportunities are being considered to further strategic delivery, while maintaining an asset-light business model.