Fever-Tree Drinks – Interim Results tomorrow could point towards its positive second-half prospects, shares now 807p, while 950p looks an easy objective
Mark Watson-Mitchell - 09.09.2026
MIX with the BEST
Tomorrow morning, Thursday, 10th September, Fever-Tree Drinks (LON:FEVR), the world's leading supplier of premium carbonated mixers, will announce its Interim Results to end-June – they could certainly help to put some fizz into the group’s share price.
However there really is a mixed bag of analyst opinions about the merits of the group’s shares, currently 807p.
I was more than interested to note that in the last week the £880m-capitalised group paid up to 852.50p for a chunk of its own shares in its share buyback programme.
In the last month it has paid up to 893p for its own stock!
The Business
Founded in 2005 by Charles Rolls and Tim Warrillow, Fever-Tree's name comes from the cinchona tree, which is also known as the fever tree in India.
The company's mission is to provide a high-quality drinking experience by combining expert manufacturing techniques with naturally sourced ingredients.
Fever-Tree's range of mixers includes tonics, ginger ales, ginger beers, sodas, lemonades, and more.
Its products are distributed in over 95 countries, with key markets outside the UK including the USA, Spain, and Belgium.
The company's core principle is that if three-quarters of a drink is the mixer, it should be of the highest quality.
Its aim is to provide high-quality mixers which could cater to the growing demand for premium spirits, in particular gin, but also increasingly for vodka, rum and whisky.
The company now sells a range of carbonated mixers to hotels, restaurants, bars and cafes, and off-trade retail channels, including supermarkets and specialty stores.
AGM Statement
On Tuesday, 9th June, the company announced a positive trading update ahead of its AGM, expressing confidence in achieving full-year market expectations and extending its share buyback programme by an additional £30m.
The company highlighted progress in its US growth acceleration strategy, including a new national marketing campaign and continued partnership with Molson Coors, alongside diversification efforts with a new UK campaign and strong performance in Australia for its premium soft drinks.
Fever-Tree also reported further market share gains in key regions and has significantly extended its cost hedging for energy and other components through 2028 to build business resilience.
Management Comment
CEO Tim Warrillow stated that:
"We have continued to make good progress against our strategic priorities so far this year.
Fever-Tree is well placed to drive long-term growth across our markets as both a premium mixer and soft drink brand and this year we are significantly increasing marketing investment and innovating to support our growth ambitions.
Notwithstanding the current uncertainty in the geopolitical backdrop, we are well hedged from a cost perspective and remain confident in achieving market expectations for both adjusted revenue and EBITDA."
The Equity
There are some 111.5m shares in issue.
The Founder Directors are still big holders - Timothy Warrillow holds 5,575,172 shares representing 4.98% of the equity, while Charles Rolls owns 5,099,838 shares (4.56%).
The larger holders include Lindsell Train Ltd. (10.57%), Capital Research & Management Co. (World Investors) (6.28%), Ninety One UK Ltd. (5.35%), FIL Limited (5.00%), Nordflint Capital Partners Fondsmæglerselskab A/S (4.97%), TIAA-CREF Investment Management LLC (3.12%), Liontrust Investment Partners LLP (3.08%), Foord Asset Management (Singapore) Pte Ltd. (2.66%), and Capital Research & Management Co. (Global Investors) (1.84%).
Broker Views
There is a very mixed bag of opinions about the group’s prospects.
There are some 15 analysts following the company, with four calling the shares as a Buy, one to Outperform, seven as a Hold, two to Underperform, and one saying Sell.
The consensus average Target Price is 949p, while the Lowest is 630p and the Highest at 1500p.
Consensus estimates look for current-year sales of £402.9m (£375.3m), with pre-tax profits of £39.8m (£29.9m), generating 28.68p (24.12p) per share in earnings.
For 2027 the estimates are for £438.3m sales, £53.8m profits and 38.82p in earnings.
The 2028 figures suggest that sales could be £477.0m, with £67.7m of profits and 49.17p in earnings per share.
Analyst Sahill Shan, at Singer Capital Markets, considers that:
“The Interims represent the first real opportunity to assess whether broader distribution and marketing investment are translating into tangible progress.
We expect commentary on account expansion, SKU depth, rate of sale and marketing effectiveness to carry greater weight than the reported H1 growth rate itself.”
He also notes that:
“The UK provides the clearest test.
Non-tonic growth offset tonic declines in H2 FY25, returning revenue to flat growth after several years of contraction.
Evidence that adult soft drinks, RTDs and ginger beer are gaining sufficient scale to sustain positive UK growth would reinforce our view that Fever-Tree is becoming progressively less reliant on tonic.”
Shan’s Target Price is for 1,180p.
Over at Investec its analysts expect the company to have returned to growth in the UK.
They forecast a 6% rise in Interim revenues at £184m, with adjusted pre-tax profits of some £19.0m.
They note that subdued spirit demand across the UK, Europe and the US could remain a key challenge for the group.
My View
This group’s shares, now 807p, are trading on very high price-to-earnings ratios, now 28.1 times current-year estimates.
However, two years out that drops convincingly to just 16.5 times – which could well create good capital gains for patient investors.
I see 950p as being an easy price objective in due course.
(Profile 09.09.26 @ 807p set a Target Price of 950p)
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