British drinks brand Fever-Tree’s profits soared in 2024, despite a drop in sales in the UK.

For the full year to 31 December 2024, Fever-Tree’s adjusted EBITDA increased 66% to £50.7 million, in-line with expectations.

Brand sales growth across Europe accelerated to 7% in the second half to deliver 4% growth for the full year. However, UK sales were down 3% to £111.1m.

Despite this, the brand said that it remains “the clear market leader in the UK, outperforming the mixer category at retail in 2024”.

In the US, sales increased 12% to £128m as it extended its leadership position in the ginger beer and tonic water categories to 32% and 27%, respectively.

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Fever-Tree co-founder and chief executive Tim Warrillow said: “Across every key region, we are gaining market share, with more consumers discovering, enjoying, and becoming loyal to Fever-Tree each year across a growing variety of drinking occasions. This was particularly noticeable in our largest region, the US, where once again the brand grew strongly and well ahead of the market.”

Looking ahead, the group expects to deliver strong sales and EBITDA growth over the medium term, following its strategic partnership with Molson Coors in the US.

In January, Carling owner Molson Coors snapped up an 8.5% shareholding in Fever-Tree, in a bid to drive its next stage of growth in the US.

The proceeds of the issue will be returned to shareholders via a share buyback programme of £71m, in a move Warrillow termed “transformational”.

The drinks brand said that while only a few weeks have passed since the announcement of the deal, sales momentum has remained strong and good initial progress has been made.

Warrillow added: “This collaboration marks a step change for our presence in the world’s largest premium drinks market. Molson Coors’ powerful network of US distributors across both on and off-trade, combined with their dedicated, national salesforce and deep customer relationships creates the ideal platform to maximise our brand strength and future potential across both alcohol and non-alcoholic occasions.

“Looking to the future, our focus remains on unlocking Fever-Tree’s long-term potential across the world and capitalising on the unique position the brand has established sitting across alcohol and non-alcohol occasions.”