- Total group revenue up 1% to £368.5 million
- 2% year-on-year for final dividend increase
- Strong US growth of 12%
Shares in Fevertree Drinks (FEVR:AIM) gained over 5% to 784p in morning trading after the premium mixer drinks maker experienced strong US growth for the 12 months ending 31 December.
Total group revenue was marginally higher at £368.5 million and total Fever-Tree revenue was up 3% to £364 million.
The company saw robust growth in the US of 12% with gains in key categories like ginger beer and tonic.
The shares have been on the up in recent weeks following the announcement a strategic partnership with beer company Molson Coors (TAP:NYSE) to build up its presence in key US markets.
Molson Coors bought an 8.5% in the business for £71 million which helped build cash on the balance sheet, and this is now subsequently being returned to shareholders via a buyback programme.
So far, Fevertree has returned £100 million to shareholders including the recent £29 million, equivalent to 3.1% of the firm's market capitalisation.
The company also announced a 2.2% year-on-year increase in the final dividend to 11.12p per share.
FURTHER SHARE BUYBACKS IN THE CARDS
Analysts at Panmure Liberum are upbeat about the Madagascan cola-to-mojito mixer seller saying further buybacks could be in the pipeline: ‘Our view remains that the group could return up to £175 million of excess cash over the next five years, over and above circa £120 million of expected dividends.
They go on to say: ‘2025 will be a transition year as Molson Coors takes over US operations and guidance is maintained. The investment case remains focused on the performance of the Fever-Tree brand in the US post the partnership with Molson Coors.
‘We believe the partnership could supercharge Fever-Tree’s ability to capture the large US opportunity and ensures the long-term potential of the business much more realistically achievable.’
