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Fevertree Drinks PLC on Thursday said it plans to cancel its share premium account to create additional distributable reserves, a move aimed at supporting future dividends, share buybacks and broader corporate flexibility. The premium cancellation, subject to shareholder and court approval, would give the premium mixers maker more headroom to return capital to investors. A general meeting to approve the proposal will be held on October 17, with the effective date expected around November 12. The announcement followed interim results for the six months to June 30, in which Fevertree reported a 15% drop in pretax profit to £11.2 million from £13.2 million, as revenue fell 17% to £144.3 million from £172.9 million. The company cited weaker On-Trade demand in the UK and costs linked to its strategic transition in the US. Despite the fall in headline figures, the London-based manufacturer of premium drink mixers raised its interim dividend to 5.97 pence per share from 5.85p and said it remained on track to meet full-year expectations. Shares in Fevertree jumped 9.7% to 850.00 pence in London on Thursday morning. Chief Executive Officer Tim Warrillow said the group had made a ‘good start’ to the second half, helped by strong summer trading and growth in newer product lines like ginger beer and premium soft drinks. These now account for 45% of group revenue, up from 30% in the UK alone. Fevertree also highlighted progress in its partnership with Molson Coors Beverage Co in the US, which began national distribution in June. The deal, first announced in January, gives Molson Coors exclusive rights to sell and produce the brand in the US. The company said strong cash flows and inflows from the Molson Coors transition lifted its cash balance to £130 million, up 97% year-on-year. It also extended its buyback programme by another £30 million through 2026. ‘More than half of the 3.6 million UK households that buy Fever-Tree are now also purchasing products from our broader portfolio,’ CEO Warrillow said. ‘This is a clear sign that our diversification strategy is resonating.’ Fevertree said the proposed cancellation of its share premium account would not affect the number or nominal value of its ordinary shares. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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