Fevertree Drinks Delivers In-Line Trading Update Ahead of AGM
Why we think this is neutral
The trading update from Fevertree Drinks indicates the company is performing in line with expectations, with low single-digit revenue growth and an EBITDA margin around 12% expected for the full year. While the company is seeing good momentum in the US market and progress with its strategic partnership with Molson Coors, the overall sentiment is neutral as the low growth and high valuation metrics suggest limited upside potential in the near term.
Key Points
- Fever-Tree trading in-line with expectations
- Low single-digit Group revenue growth and c.12% EBITDA margin expected for FY25
- Strong momentum in the US market following strategic partnership with Molson Coors
- Fever-Tree retaining number one position in the UK
- Good momentum in Europe, but more muted sales in Germany
- Transition of US distribution to Molson Coors network progressing as expected
Summary
Fevertree Drinks PLC has provided a trading update ahead of its Annual General Meeting, reporting that the company is trading in line with expectations. The company is seeing good progress in the US market following its strategic partnership with Molson Coors, and has retained its number one position in the UK. In Europe, the company has seen good momentum in some markets but more muted sales in Germany. The transition of Fever-Tree's distribution to Molson Coors' network in the US is underway and progressing as expected.