Highlights

  • Fevertree Drinks has received a buy rating from one broker.
  • Broker has issued target price of AUD 22.59, indicating a potential upside of 35.47% from current levels.

Fevertree Drinks plc (LSE:FEVR) has maintained its positive standing among analysts, with one broker issuing a buy rating and a target price of AUD 22.59. This projection represents a potential 35.47% increase from the company’s current trading levels

Financial and Operational Performance

In the six months ended 30 June 2025, Fevertree reported a 2% YoY increase in revenue at constant currency and a 1% rise in adjusted EBITDA to £18.4 million, with margins improving by 20 basis points to 10.7%. The group recorded £4.1 million in exceptional items linked to the transition of its U.S. operations under a new distribution partnership with Molson Coors.

The company’s cash position improved significantly to £130 million, nearly doubling from the prior period, supported by operating cash flow and proceeds from the Molson Coors collaboration. Fevertree also declared an interim dividend of 5.97 pence per share, reflecting a 2% year-on-year increase.

Management reaffirmed that the Group remains on course to meet its full-year targets, citing a strong start to the second half across all operating regions.

Strategic Progress

During the reported period, Fevertree executed its long-term partnership with Molson Coors, signed in January 2025. The agreement grants Molson Coors exclusive rights to sell, distribute, and produce Fevertree products in the United States. The transition into Molson Coors’ national network began in June and is progressing smoothly, with retail sales outpacing market growth across all sub-categories.

Product diversification also continues to pay dividends. The company’s non-tonic beverages, such as Ginger Beer and Premium Soft Drinks, now represent 45% of total Group revenue. In the UK, the brand remains the market leader by value across both On-Trade and Off-Trade channels, while its European operations have benefited from increased demand for Ginger Beer.

Outlook

Fevertree reaffirmed its full-year guidance, citing consistent brand momentum and regional growth. Furthermore, extension of the share buyback programme by £30 million is planned to continue through 2026.