Fevertree Drinks FY24 Preliminary Results

Fevertree Drinks plc

FY24 Preliminary Results to 31 December 2024

Financial Highlights

• Fever-Tree brand revenue growth accelerated to 7%^[1] in the second half to deliver 4%¹ growth for the full year.

• Strong US growth of 12%¹, with value share gains across key categories, including Ginger Beer and Tonic.

• Significant gross margin improvement of 540bps, resulting in a 66% increase in Adjusted EBITDA to £50.7 million, in-line with expectations.

• Fever-Tree recognised £5.0 million in exceptional items in the period relating to the transition to the Molson Coors partnership.

• Strong working capital improvement, contributing to £96 million net cash, a 60% increase year-on-year.

• Recommending a final dividend of 11.12 pence per share, an increase of 2% year-on-year.

• Extending the buyback programme by an additional £29 million, resulting in up to £100 million to be returned to shareholders over FY25.

£m	FY24	FY23	Change	Constant currency change
Revenue
UK	111.1	114.8	(3)%
US	128.0	117.0	9%	12%
Europe (brand revenue)	92.7	94.6	(2)%	22%
ROW	32.2	27.2	19%	22%
Total revenue	364.0	353.6	3%	4%
GDP bran revenue	4.5	10.8
Total Group revenue	368.5	364.4	1%	3%
Gross profit	138.4	117.0	18%
Gross margin	37.5%	32.1%	540bps
Adjusted EBITDA[2]	50.7	30.5	66%
Adjusted EBITDA margin	13.7%	8.4%	530bps
Diluted EPS (pence per share)	20.85	13.18	58%
Normalised EPS (pence per share)	28.01	15.37	82%
Ordinary Dividend (pence per share)	16.97	16.64	2%
Net cash	69.0	59.9	60%

FY24 strategic highlights

• The brand continues to outperform our competitors across our key markets.
  • In the US, Fever-Tree has extended its leadership position in the Ginger Beer and Tonic Water categories to 32% and 27% respectively^[3].
  • We remain the clear market leader in the UK, outperforming the mixer category at retail in 2024^[4], despite well documented industry headwinds.
  • In Europe, the brand gained value share of the total mixer category, as well as extending its strong lead as the largest premium mixer brand^[5].
  • The brand continues to diversify its portfolio to cater to a broader range of adult drinking occasions, with our non-Tonic products performing strongly and now comprising c.45% of our global sales, growing by 21% CAGR over the last 5 years.

New strategic partnership announced with Molson Coors in the US post-year end

• On 30^th January 2025, Fever-Tree entered into a long-term strategic partnership with Molson Coors based on a shared vision, belief and commitment to step-change Fever-Tree’s growth in the US.

• The agreement provides Molson Coors with the exclusive sales, distribution and production rights for the Fever-Tree brand in the US, for an agreed period. Fever-Tree retains full control of brand identity, vision and the development of new products for the US market.

• Molson Coors’ scale and expertise accelerates Fever-Tree’s ability to capture the sizeable total addressable market across alcohol and non-alcohol categories in the US.

• The growth opportunity for the brand will be supported by a significant upweighting in marketing investment.

• The partnership will capitalise on Molson Coors’ broad supply chain network, procurement strength and expertise to drive operational efficiencies, as well as managing the onshoring of US production over time.

• Whilst only a few weeks have passed since the announcement, sales momentum has remained strong and good initial progress has been made, and we look forward to embedding the partnership and working with Molson Coors in the coming months to fully transition Fever-Tree into their business.

FY25 outlook and guidance:

Following the announcement of Fever-Tree’s strategic partnership with Molson Coors in the US, the Group expects to deliver strong Group revenue and EBITDA growth over the medium-term. As highlighted at the time of the announcement, FY25 will be a transition year for the US business and therefore we are comfortable with consensus expectations of low single digit Group revenue growth and c.12% Group Adjusted EBITDA margin.

Tim Warrillow, Co-Founder and CEO of Fever-Tree, commented:

“The Fever-Tree brand performed well in 2024, despite the subdued consumer environment. Across every key region, we are gaining market share, with more consumers discovering, enjoying, and becoming loyal to Fever-Tree each year across a growing variety of drinking occasions. This was particularly noticeable in our largest region, the US, where once again the brand grew strongly and well ahead of the market.

Our growing market share continues to be driven by our deep understanding of global drinking trends allowing us to make the most of evolving consumer preferences. As a result, non-Tonic products now make up c.45% of our global revenues, driven by the success of our Ginger Beer and our expanding position in cocktail mixers and adult soft drinks.

Looking to the future, our focus remains on unlocking Fever-Tree’s long-term potential across the world and capitalising on the unique position the brand has established sitting across alcohol and non-alcohol occasions.

A landmark moment in this journey came just after year-end with the announcement of our most significant strategic step to date: a transformative partnership with Molson Coors in the US. This collaboration marks a step change for our presence in the world’s largest premium drinks market. Molson Coors’ powerful network of US distributors across both on and off-trade, combined with their dedicated, national salesforce and deep customer relationships creates the ideal platform to maximise our brand strength and future potential across both alcohol and non-alcoholic occasions.”