Since Fevertree Drinks (FEVR) was admitted to Aim last November, its market value has risen by about a half. Judging by the company's maiden full-year results as a publicly traded entity, investor confidence hasn't been misplaced. Adjusted cash profits were up 48 per cent to £10m on a margin of 28.8 per cent, with particularly strong sales growth in its two largest markets, the UK and US.
The brand was launched 10 years ago after its founders, Charles Rolls (formerly of Plymouth Gin) and Tim Warrillow, recognised that the beverage industry had failed to provide a high-end range of mixers to match the premium brands taking an ever greater share of the spirits market. Messrs Rolls and Warrillow believe that if quality-conscious consumers are willing to fork out a few extra pounds for a bottle of premium gin, they're hardly likely to baulk at a few extra pence for a decent tonic.
About a third of Fevertree's sales are generated in the UK, of which 60 per cent is attributable to pubs and clubs. However, the company has also made significant inroads into the domestic off-trade sector. Meanwhile, sales in the US grew by 59 per cent in 2014, aided by a near-doubling in take-up for the company's ginger beer brand.
House broker Investec Securities predicts adjusted EPS of 7.6p in 2015, against 6.5p last year.
| FEVERTREE DRINKS (FEVR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 215p | MARKET VALUE: | £248m | |
| TOUCH: | 213-215p | 12M HIGH / LOW: | 219p | 134p |
| DIVIDEND YIELD: | 0.1% | PE RATIO: | 140 | |
| NET ASSET VALUE: | 46p* | NET CASH: | £3.3m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 † | 20.6 | -1.4 | -3.1 | nil |
| 2014 | 34.7 | 2.5 | 1.5 | 0.3 |
| % change | +69 | - | - | - |
Ex-div: 23 Apr Payment: 22 May *Includes intangible assets of £44.6m or 39p a share † Trading period from 7 March 2013 following the incorporation of Fevertree Drinks in February 2013 | ||||
