Fevertree has reported a strong full-year performance, with surging US sales helping to counterbalance a dip in its domestic UK market.
The upmarket mixer brand saw revenues in the United States rise by 9 per cent to £128 million in the year ending 31 December 2024, reinforcing the US’s position as the company’s largest market by revenue.
The Aim-listed firm said it had “outpaced” competitors in the States, even against a “more subdued spirit environment”, gaining market share in both the tonic and ginger beer categories, now holding 27 per cent and 32 per cent respectively.
Group revenues grew 3 per cent on a constant currency basis to £368.5 million, with adjusted profits jumping by an impressive 66 per cent to £50.7 million. Pre-tax profits also climbed, reaching £35.5 million compared to £22.2 million the previous year.
The company’s solid performance has prompted it to extend its share buyback programme by an additional £29 million, taking the total shareholder return planned for the year to £100 million.
In the UK, Fevertree reported a 3 per cent drop in revenue to £111.1 million, citing continued low consumer sentiment and a downturn in the gin category. However, it noted a much-improved performance in the second half and remains confident that the UK market will return to growth in 2025.
Elsewhere, European sales declined 2 per cent to £92.7 million, while revenues from the rest of the world rose 19 per cent to £32.2 million.
Fevertree, which was founded in 2004 by Charles Rolls and Tim Warrillow to provide premium mixers for the gin market, now sells its products in more than 90 countries. Over the past five years, it has expanded its portfolio beyond tonic water, with non-tonic products now accounting for around 45 per cent of global sales.
Chief executive Tim Warrillow said the brand has done a “really good job” diversifying its offering, with growth increasingly being driven by its flavoured sodas, adult soft drinks and cocktail mixers. He also highlighted the group’s recently announced partnership with US drinks giant Molson Coors as a key strategic move to unlock further long-term global growth.
The agreement, which was unveiled in January, gives Molson Coors responsibility for sales, distribution and future production of Fevertree products in the US. As 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.”
While 2025 is expected to be a transitional year for its US business as the Molson Coors tie-up takes effect, Fevertree said it is comfortable with market expectations of low single-digit revenue growth this year. Analysts are forecasting sales of £376 million and adjusted profits of £45 million.
Shares in Fevertree rose 42.5p, or 5.7 per cent, to 787.5p following the results announcement. The company, which floated at just 34p in 2014, continues to demonstrate resilience and growth potential in a competitive global beverage market.
