Fevertree Drinks (AIM:FEVR) reported interim results in line with expectations and said it remained confident in the full-year outlook.
Revenue was stable at £172.2 million, up 2% at constant currency. Adjusted EBITDA rose 1% to £18.4 million, with margins improving by 20 basis points to 10.7%. Profit before tax fell 15% to £11.2 million.
Cash nearly doubled to £130 million, reflecting both trading and inflows from the Molson Coors partnership signed in January for North American distribution.
US retail sales momentum was said to have remained strong through the transition to Molson Coors’ distribution network, which started in June.
In the UK, off-trade sales held up well while on-trade conditions remained subdued. Across Europe, Ginger Beer delivered strong growth, consolidating Fever-Tree’s position as category leader.
The board declared an interim dividend of 5.97p per share, up 2% on the prior year, and announced an extension of its share buyback programme by a further £30 million to continue in 2026.
Chief executive Tim Warrillow said: "The transition of the business to Molson Coors is progressing well and despite the complexity of such a transition".
"In the UK, the wider on-trade category continues to face challenges, but our off-trade performance has remained robust."
He highlighted that in the off-trade more customers are purchasing products from across the portfolio, such as ginger beer or soft drinks, with products beyond tonic now making up 45% of group revenues.
"The group has made a good start to the second half of the year across our regions and we remain comfortable with full year market expectations."