Fevertree has reported a robust full-year efficiency, with surging US gross sales serving to to counterbalance a dip in its home UK market.
The upmarket mixer model noticed revenues in the US rise by 9 per cent to £128 million within the yr ending 31 December 2024, reinforcing the US’s place as the corporate’s largest market by income.
The Intention-listed agency mentioned it had “outpaced” rivals within the States, even in opposition to a “more subdued spirit environment”, gaining market share in each the tonic and ginger beer classes, now holding 27 per cent and 32 per cent respectively.
Group revenues grew 3 per cent on a relentless forex foundation to £368.5 million, with adjusted earnings leaping by a powerful 66 per cent to £50.7 million. Pre-tax earnings additionally climbed, reaching £35.5 million in comparison with £22.2 million the earlier yr.
The corporate’s stable efficiency has prompted it to increase its share buyback programme by an extra £29 million, taking the entire shareholder return deliberate for the yr to £100 million.
Within the UK, Fevertree reported a 3 per cent drop in income to £111.1 million, citing continued low client sentiment and a downturn within the gin class. Nevertheless, it famous a much-improved efficiency within the second half and stays assured that the UK market will return to development in 2025.
Elsewhere, European gross sales declined 2 per cent to £92.7 million, whereas revenues from the remainder of the world rose 19 per cent to £32.2 million.
Fevertree, which was based in 2004 by Charles Rolls and Tim Warrillow to offer premium mixers for the gin market, now sells its merchandise in additional than 90 nations. Over the previous 5 years, it has expanded its portfolio past tonic water, with non-tonic merchandise now accounting for round 45 per cent of world gross sales.
Chief govt Tim Warrillow mentioned the model has executed a “really good job” diversifying its providing, with development more and more being pushed by its flavoured sodas, grownup comfortable drinks and cocktail mixers. He additionally highlighted the group’s lately introduced partnership with US drinks big Molson Coors as a key strategic transfer to unlock additional long-term world development.
The settlement, which was unveiled in January, provides Molson Coors accountability for gross sales, distribution and future manufacturing of Fevertree merchandise within the US. As a part of the deal, the American brewer acquired an 8.5 per cent stake in Fevertree for £71 million.
Warrillow described the partnership as “the ideal platform to maximise our brand strength and future potential across both alcohol and non-alcoholic occasions.”
Whereas 2025 is predicted to be a transitional yr for its US enterprise because the Molson Coors tie-up takes impact, Fevertree mentioned it’s snug with market expectations of low single-digit income development this yr. Analysts are forecasting gross sales of £376 million and adjusted earnings of £45 million.
Shares in Fevertree rose 42.5p, or 5.7 per cent, to 787.5p following the outcomes announcement. The corporate, which floated at simply 34p in 2014, continues to exhibit resilience and development potential in a aggressive world beverage market.
