REG - Fevertree Drinks PLC - AGM Trading Statement

Fevertree DrinksAnnouncement

Thu 07:00

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RNS Number : 4973L  Fevertree Drinks PLC  05 June 2025

Fevertree Drinks plc

TRADING UPDATE

 

Fever-Tree, the world's leading supplier of premium carbonated mixers,
announces a trading update ahead of its Annual General Meeting ("AGM"), which
is being held today at 11am BST.

Fever-Tree is trading in-line with expectations, with good progress being made
in the US following the announcement of our strategic partnership with Molson
Coors. We remain comfortable with consensus expectations of low single digit
Group revenue growth at constant currency and c.12% Group Adjusted EBITDA
margin for FY25.

Trading update:

·    Fever-Tree continues to deliver strong momentum in the US market,
with underlying brand performance well ahead of the competition 1 . The
transition of Fever-Tree's distribution to Molson Coors' network of
distributors is underway and both businesses remain highly aligned and excited
about the significant growth opportunity ahead.

·    In the UK, Fever-Tree has retained its number one position across
both channels 2 , reflecting the strength of our brand and diversity of our
portfolio, which is enabling Fever-Tree to capture growth through drinks that
span both alcoholic and non-alcoholic occasions.

·    In Europe, we've seen good momentum across multiple markets,
including The Netherlands and France, but a continuation of more muted sales
in Germany. Our Ginger Beer product is continuing to drive growth across the
board as we broaden our offering for European consumers to new consumption
occasions.

·    In the ROW region, we have now commenced local production in
Australia, supporting the momentum of the brand as we continue to grow market
share.

Update on the strategic partnership with Molson Coors, announced on 30 January
2025:

We have made good progress since the announcement of our strategic partnership
with Molson Coors. Whilst we are currently working through the key months of
transition into Molson Coors' distribution network, it is proceeding as
expected so far and we are confident the brand will benefit from Molson Coors'
scale, including its deep customer relationships, merchandising capabilities,
and extensive supply chain network in the coming years.

The recent introduction of a 10% tariff on UK imports into the US will be
shared equally between Fever-Tree and Molson Coors as part of the partnership
arrangement and both businesses are working to mitigate the short-term impact.
Importantly, tariffs do not present a structural headwind for the business as,
over time, they will be materially mitigated by a combination of on-shored US
production and the profit guarantee mechanism.

Following the successful transition of the Fever-Tree USA team to Molson
Coors, Charles Gibb, our North America CEO, is stepping down. We would like to
sincerely thank Charles for his outstanding contribution to the business.
Charles has been succeeded by the US Chief Commercial Officer, Judd Hausner,
who has been with the Fever-Tree USA business since its establishment in 2018.
He previously worked extensively across the US beer network and therefore has
the ideal blend of experience to manage the partnership locally.

Update on the Buyback:

Fever-Tree initiated a share buyback of £71 million in February 2025, which
was extended by a further £29million in March 2025, subject to shareholder
approval at the AGM. As of 30 May 2025, we have returned c.£42.5 million to
shareholders, with the remainder planned to be returned over the course of the
year, reflecting the Group's strong balance sheet and further prospects for
improved cash flow generation resulting from this strategic partnership.

The Group's capital allocation framework remains unchanged. We intend to
retain sufficient cash for investment opportunities, primarily in operational
expenditure, including increased marketing spend in growth regions. We are
also vigilant regarding M&A opportunities that would further assist with
the delivery of our strategy. Beyond this, where the Board considers there to
be surplus cash held on the Balance Sheet as a result of the excess cash
generated by our asset-light, cash compounding business model, this can be
returned to shareholders.

For more information please contact:

Investor queries

Ann Morris-Gibbons, Director of Investor Relations I ann.hyams@fever-tree.com
(mailto:ann.hyams@fever-tree.com) I +44 (0)7435 828 138

Media queries

Oliver Winters, Director of Communications I oliver.winters@fever-tree.com
(mailto:oliver.winters@fever-tree.com) I +44 (0)770 332 9024

 

Nominated Advisor and Broker - Investec Bank plc

David Flin I +44 (0)20 7597 5970

Corporate Broker - Jefferies International Limited

Ed Matthews I Richard Taylor I +44 (0)20 7029 8000

Financial Advisor - Morgan Stanley & Co. International plc

Henry Stewart I +44 (0)20 7425 8000

Financial PR advisers - FGS Global

Faeth Birch +44 (0)7768 943 171; Anjali Unnikrishnan +44 (0) 7826 534 233

 

 

Notes to the Editors:

Fever-Tree is the world's leading supplier of premium carbonated mixers by
retail sales value, with distribution to over 85 countries worldwide. Based in
the UK, the brand was launched in 2005 to provide high quality mixers which
could cater to the growing demand for premium spirits, in particular gin, but
also increasingly for vodka, rum and whisky. The Company now sells a range of
carbonated mixers to hotels, restaurants, bars and cafes ("On Trade") as well
as selected retail outlets ("Off Trade").

 1  Nielsen YTD 17 May 2025

 2  IRI 52 weeks to 20/04/25 and CGA MAT to 22/03/25

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