Fever-Tree boosts shareholder buyback to £100 million

Fever-Tree Drinks is increasing its share buyback program by £29 million after reporting strong earnings that exceeded expectations. The company now plans to return up to £100 million to shareholders in 2025. In 2024, Fever-Tree's adjusted profits rose by two-thirds to £50.7 million, slightly above analyst forecasts. This growth was attributed to lower costs related to glass and freight. However, overall revenue increased just 1% to £364 million, reflecting weak consumer spending in the UK and Europe due to inflation. In the UK, revenues fell by 3% to £111.1 million, mainly due to reduced demand from bars and restaurants. This decline was balanced by a 9% revenue increase in the US, where Fever-Tree expanded its customer base and solidified its market position in tonic water and ginger beer. Fever-Tree also reported strong sales in Canada and Australia, with successful new product launches. CEO Tim Warrillow noted that the brand performed well despite challenging conditions, gaining market share and increasing consumer loyalty. The company announced a final dividend of 11.2 pence per share, a 2% increase from the previous year. Looking ahead, Fever-Tree expects modest revenue growth in 2025 and mentioned a partnership with Molson Coors to boost its presence in the US market. Despite recent stock gains, Fever-Tree shares have struggled over the past year, down approximately 25%.