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(Sharecast News) - Shares in Fever-Tree Drinks fizzed on Tuesday, after the British business reaffirmed its full-year outlook and extended its share buyback programme.
Updating shareholders at its annual general meeting, the AIM-listed firm - a specialist in carbonated tonics and others mixers - said it had made a "solid" start to the year.
In particular, it noted that its partnership with America's Molson Coors Beverage Company, signed in January 2025, was progressing well, while a new marketing campaign launched in the UK.
It also confirmed it had hedged glass costs, which have been hit by the recent spike in energy prices, through 2027 and into 2028.
Tim Warrillow, chief executive, said: "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 increasingly marketing investment and innovating to support our growth ambitions,
"Notwithstanding the current uncertainty in the geopolitical backdrop, we are well hedged from a cost prospective and remain confident in achieving market expectations for both adjusted revenue and earnings."
Fever-Tree also announced a further 30m extension to its share buyback, adding to the 100m capital return completed in the previous year, and an ongoing 30m tranche.
As at 1000 BST, the stock had put on 6% at 807p.
Jefferies, which has a 'buy' rating on the stock, called it a "reassuring" update. It continued: "The US is seeing early traction, which increased distribution and account wins. We see the Molson Coors partnership providing a significant uplift in scale and execution capability, while also de-risking the supply chain and driving higher quality of earnings."
The market is currently looking for annual sales of 402.1m and earnings before interest, tax, depreciation and amortisation of 50.4m.
Fever-Tree is due to publish interim numbers on 10 September.
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