Yahoo Finance UK’s Vicky McKeever writes:
Shares in Fevertree Drinks (FEVR.L) jumped 10%, after the tonic-maker announced that it was extending its share buyback programme by a further £30m.
In first half results released on Thursday, Fevertree reported total adjusted revenue of £172.2m, which was little changed on the same period last year.
However, profit before tax was down 15% for the first half to £11.2m, compared to £13.2m for the same period in 2024.
In addition, the company gave an update on its strategic partnership with Molson Coors (TAP), announced in January, which gives the beverage company exclusive rights to sell, distribute, and produce the Fever-Tree brand in the United States. Fevertree said that the move into Molson Coors’ national network of distributors commenced in June as planned and is progressing well.
Mark Crouch, market analyst at eToro, said: “Fevertree’s much-heralded partnership with Molson Coors, was meant to put some fizz back into the premium mixer. A gateway to scale a chance to sharpen its presence in the all-important US market. There are signs of promise, US revenues edged higher in the latest update, helped by stronger distribution and brand visibility. But momentum still feels laboured.”
“At home, however, the picture is less effervescent,” he said. “UK revenues have declined, and the domestic market, once the brand’s powerhouse, looks increasingly saturated. Relentless cost of living pressures, soaring borrowing costs, and a sharp pivot towards value are forcing consumers to make tougher trade-offs, particularly in discretionary categories, where premium mixers are no exception.”