Fevertree Drinks (AIM:FEVR), the premium mixer brand, posted a 2% rise in full-year revenue to £375 million but saw profits slide due to initial costs from the first year of its US distribution partnership with Molson Coors and a new environmental levy.
Adjusted EBITDA fell 16% to £42.4 million, as margins fell from 13.7% to 11.3%. There was a £2.8 million charge related to the UK's Extended Producer Responsibility (EPR) levy, a government scheme that makes packaging producers pay for recycling costs, which Fever-Tree is contesting in court.
Stripping out that charge, adjusted EBITDA was £45.2 million, in line with previous guidance.
The US remains Fevertree's largest market, with revenues up 6% in constant currency terms to £131.9 million, despite disruption from handing distribution to drinks giant Molson Coors.
UK revenue dipped 2% to £108.4 million, though performance improved in the second half.
Chief executive Tim Warrillow said the Molson Coors transition had "progressed well" and that underlying brand momentum had remained strong throughout.
A notable bright spot was diversification beyond tonic, with products such as ginger beer now accounting for 45% of group revenue, up from a tonic-dominated base.
The group's first-ever share buyback of £100 million was completed during the year and a further £30 million programme is underway.
Looking to the current year, Warrilow said: "Notwithstanding the current uncertain geopolitical outlook, our expectations for 2026 remain unchanged and in line with market expectations."