Fevertree Drinks (AIM:FEVR) shares jumped 6% on Tuesday morning after the premium mixer maker reiterated its full-year guidance and struck an upbeat tone on the medium-term benefits of its new partnership with Molson Coors in the United States.
The London-listed drinks brand said it expected continued revenue and profit growth in 2025, despite a transition year as the US business shifts under the new agreement.
Under the deal, announced in January, Molson Coors will take on sales, distribution and production for Fevertree across the US, while the UK company retains control of its brand and product development.
Early signs are encouraging, with sales momentum holding up and integration progressing well, Fever-Tree said.
The update accompanied results showing adjusted earnings before interest, tax, depreciation and amortisation up 66% to £50.7 million, with gross margins improving by more than five percentage points.
A buyback programme has been expanded by £29 million and a final dividend of 11.12p has been proposed.
The stock was up 45.5p at 790.5p.