Fevertree Drinks

Website: Fevertree Drinks
Index: AIM
EPIC: FEVR
Supersector: Food, Beverage and Tobacco
Sector: Beverages
Subsector: Soft Drinks
Market Cap: £860.38M
Payout Frequency: Semi-Annual

Fevertree Drinks Dividend Analysis and Summary

Dividend Summary

Final dividend: 11.34p per share (+2% YoY)
Total FY25 dividend: 17.31p per share (+2% YoY)
Ex-dividend date: 21/05/2026 (derived from record date)
Record date: 22/05/2026
Payment date: 26/06/2026
Approval: subject to AGM on 09/06/2026
Payout ratios (FY25): c.92% of basic EPS (18.78p); c.72% of normalised EPS (24.12p)
Cash cost: FY25 dividends paid £20.7m; proposed final totals £13.1m

Sustainability and Coverage

Earnings cover is tight on statutory metrics (DPS 17.31p vs basic EPS 18.78p), but more comfortable on a normalised basis (24.12p).
Cash flow cover is adequate but not generous: net cash from operations £28.0m and estimated FCF (~£23.1m after £4.9m capex) vs cash dividends paid £20.7m in FY25.
Balance sheet support remains strong with year-end cash of £91.1m and an asset-light model.
Profitability dipped in FY25 (Adjusted EBITDA £42.4m, -16%; margin 11.3%), reflecting the US transition; management guides confidence for 2026, with margin uplift expected as US production is onshored.
Overall: dividend appears sustainable given cash and capital-light operations, but headroom relies on execution of the US partnership benefits and stabilisation in UK On-Trade.

Dividend Growth and Policy

Continued progressive dividend policy, with a measured +2% increase in both interim and final DPS despite EPS decline (normalised EPS -14%).
Capital allocation skews to buybacks: £100m completed in 2025 and a further £30m underway in 2026, indicating surplus cash generation and prioritisation of per-share returns alongside dividends.

Structural/Capital Allocation Developments Impacting Future Dividends

US strategic partnership with Molson Coors: Fever-Tree now recognises US profits via royalties and cost-pass-throughs rather than full consolidation. Near-term margins are lower, but working capital needs drop, and onshoring to the US should reduce tariffs and improve profitability over the medium term—supportive for cash generation and dividend capacity.
Equity and buybacks: Molson Coors acquired an 8.5% stake (c. £71m proceeds). £100m of shares were repurchased and cancelled (plus £30m extension). Net effect should modestly reduce future cash dividend outlay per pence of DPS as the share count trends down, though partially offset by the new shares issued to Molson Coors.
EPR levy provision: A post-period provision of £2.8m was recognised pending a legal challenge. One-off in nature; limited structural impact unless ongoing costs emerge.

Risks and Flags to Dividend Stability

Coverage risk: High payout versus statutory EPS; dividend growth ahead of earnings decline requires improvement in FY26 execution to rebuild cover.
US transition/margin risk: US Adjusted EBITDA margin fell to 6.3% (from 14.4%); tariff and transition costs persist until onshoring is complete.
UK On-Trade softness: Ongoing pressure on gin and On-Trade volumes could weigh on tonic-led sales; diversification (45% of revenue beyond tonic) helps but isn’t a full offset near term.
EPR/regulatory: Potential cash outflow of £2.8m if the legal challenge fails (modest but a headwind).
Execution and macro: Increased marketing investment, FX, and geopolitical uncertainty could affect cash conversion and earnings.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
15/05/2025	20/06/2025	Final	11.12p	GBX
25/09/2025	17/10/2025	Interim	5.97p	GBX

Total (Annual Dividends Per Share): 17.09p

Dividend Yield = Annual Dividends Per Share (17.09p) ÷ Share Price (751.5p) = 2.27%

Ex Dividend Date	Payment Date	Type	Amount	Currency
21/05/2026	26/06/2026	Final	11.3400p	GBX
25/09/2025	17/10/2025	Interim	5.97p	GBX
15/05/2025	20/06/2025	Final	11.12p	GBX
26/09/2024	18/10/2024	Interim	5.85p	GBX
16/05/2024	21/06/2024	Final	10.90p	GBX
28/09/2023	20/10/2023	Interim	5.74p	GBX
20/04/2023	02/06/2023	Final	10.68p	GBX
29/09/2022	21/10/2022	Interim	5.63p	GBX
07/04/2022	27/05/2022	Final	10.47p	GBX
30/09/2021	22/10/2021	Interim	5.52p	GBX
08/04/2021	28/05/2021	Final	10.27p	GBX
24/09/2020	16/10/2020	Interim	5.41p	GBX
14/05/2020	12/06/2020	Final	9.88p	GBX
08/08/2019	06/09/2019	Interim	5.20p	GBX
25/04/2019	31/05/2019	Final	10.28p	GBX
09/08/2018	07/09/2018	Interim	4.22p	GBX
19/04/2018	25/05/2018	Final	7.64p	GBX
10/08/2017	08/09/2017	Interim	3.01p	GBX
20/04/2017	26/05/2017	Final	4.71p	GBX
11/08/2016	09/09/2016	Interim	1.54p	GBX
07/04/2016	06/05/2016	Final	2.30p	GBX
13/08/2015	04/09/2015	Interim	0.78p	GBX
23/04/2015	22/05/2015	Final	0.30p	GBX

Year	Interim	Final	Currency	Total	Change
2024	5.850	10.900	GBX	16.750	2.000
2023	5.740	10.680	GBX	16.420	1.980
2022	5.630	10.470	GBX	16.100	1.960
2021	5.520	10.270	GBX	15.790	3.270
2020	5.410	9.880	GBX	15.290	-1.220
2019	5.200	10.280	GBX	15.480	30.520
2018	4.220	7.640	GBX	11.860	53.620
2017	3.010	4.710	GBX	7.720	101.040
2016	1.540	2.300	GBX	3.840	255.550
2015	0.780	0.300	GBX	1.080

Number of Shares:

Payment	Paid	Amount
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