Fevertree Drinks (FEVR) H2 2025 earnings summary

Executive summary

• Achieved 4% constant currency revenue growth in 2025, with acceleration in H2 and strong cash generation supporting over £120 million returned to shareholders via dividends and buybacks.

• Strategic partnership with Molson Coors in the U.S. established a transformational growth platform, enabling expanded distribution, doubled marketing investment, and guaranteed profit levels from 2026-2030.

• Diversification strategy advanced, with products beyond tonic now representing 45% of group revenue and strong growth in premium soft drinks and cocktail mixers.

• Maintained and extended leadership in premium mixers globally, with market share gains in key regions and resilient U.K. off-trade performance.

• Asset-light, cash-compounding business model enabled significant shareholder returns, including a £100m share buyback and a further £30m extension underway.

Financial highlights

• Adjusted brand revenue reached £372.7m, up 4% year-over-year; total revenue £375.3m, up 3%.

• Adjusted EBITDA was £42.4m, with a margin of 11.3%, down 240bps year-over-year due to US transition costs.

• U.S. delivered 6% constant currency growth, with adjusted EBITDA of £8.2 million at a 6.3% margin, impacted by transition costs and profit sharing with Molson Coors.

• Rest of Group EBITDA margin improved by 120bps to 23.6%, driven by pricing, operational efficiencies, and despite a 7% increase in marketing spend and a £4.4 million EPR packaging levy provision.

• Working capital improved significantly, supporting a 47% increase in cash position before equity and shareholder returns; free cash flow increased by £45.3m, with cash at year-end of £141.3m.

Outlook and guidance

• Confident in delivering strong revenue and EBITDA growth in 2026, barring extended geopolitical disruptions.

• U.S. top-line momentum expected to build as distribution and marketing investments compound, with FX volatility not expected to materially impact U.S. EBITDA.

• Group EBITDA growth to be driven by Rest of Group and central cost savings, with continued strong cash generation.

• Guaranteed U.S. profit mechanism from 2026-2030 underpins medium-term EBITDA expectations.

• 2026 glass costs fully hedged; continued strong cash generation expected.