UK's Fevertree prelim FY25 EBITDA and EPS miss estimates

Reuters03-24
UK's Fevertree prelim FY25 EBITDA and EPS miss estimates 

Overview

  • UK premium mixer maker's preliminary FY25 revenue grew 3% yr/yr

  • Adjusted EBITDA and EPS for FY25 missed analyst expectations

  • Company completed £100 mln share buyback, with additional £30 mln buyback underway

Outlook

  • Fevertree says FY26 expectations remain unchanged and are in line with market expectations

  • Company plans increased marketing investment in US to drive growth in 2026

  • Fevertree extends share buyback programme by £30 mln in 2026

Result Drivers

  • US TRANSITION IMPACT - Adjusted EBITDA fell due to transition-related cost inefficiencies and profit sharing under the new Molson Coors partnership, despite strong US brand momentum

  • PORTFOLIO DIVERSIFICATION - Products beyond tonic contributed 45% of group revenue, with Ginger Beer delivering double-digit growth and strengthening category leadership

  • UK ON-TRADE PRESSURE - UK On-Trade revenue declined 9% as higher labour costs, duty increases and consumer caution weighed on spirits and mixer demand

Company press release: ID:nRSX7875Xa

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

FY Revenue

GBP 375.30 mln

FY EPS

Miss

GBP 0.19

GBP 0.23 (16 Analysts)

FY Adjusted EBITDA

Miss

GBP 42.40 mln

GBP 43.97 mln (16 Analysts)

FY Adjusted EBITDA Margin

11.30%

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 3 "sell" or "strong sell"

  • The average consensus recommendation for the distillers & wineries peer group is "buy."

  • Wall Street's median 12-month price target for Fevertree Drinks PLC is GBp907.50, about 20.4% above its March 23 closing price of GBp754.00

  • The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 30 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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