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Investing.com -- Fevertree Drinks (LON:FEVR) on Thursday posted a first-half fiscal 2025 trading update in line with expectations, prompting no changes to current forecasts.
The company reiterated its guidance for low single-digit revenue growth and an adjusted EBITDA margin of about 12% for the full year, underpinned by solid momentum across core markets and a significant U.S. distribution partnership with Molson Coors (NYSE:TAP).
The transition to Molson Coors’ U.S. distribution network continues to gain traction, with Fevertree confirming progress in line with expectations.
RBC analysts described the collaboration as “transformative,” citing enhanced access to a broad sales infrastructure.
Tariff-related pressures, stemming from a 10% U.K.-to-U.S. import duty, are being equally shared between Fevertree and Molson Coors.
The impact is expected to be “materially mitigated” through on-shored production and a profit guarantee mechanism.
Regionally, the U.S. led growth in the first half, while the U.K. remained stable, with Fevertree retaining its leading position in both on-trade and off-trade channels.
In Europe, Germany saw subdued performance, but other continental markets showed positive momentum, aided by strong sales of Ginger Beer.
In the Rest of World segment, production has commenced in Australia, supporting further geographic expansion.
Fevertree also reported progress on its £71 million share buyback program. As of the update, approximately £42.5 million has been repurchased, including a £29 million extension announced in March. The remainder is expected to be executed over the course of the year.
Consensus estimates for calendar 2025 include revenue of £375.2 million, adjusted EBIT of £32.2 million, and adjusted EPS of 23.1 pence.