The success or otherwise of its match-ups with the major supermarkets will determine whether Fevertree Drinks (FEVR) can maintain and even outstrip the strong performance reported in its half-year results. The company saw adjusted cash profits up 68 per cent to £7.2m, thanks to strong sales growth across its target markets.
The company was founded 10 years ago by Charles Rolls - who used to run Plymouth Gin - and Tim Warrillow, and has sought to dominate the upmarket mixer arena. Management argues that while it may look like the business faces little competition, there are several "copycats in lots of territories". But so far the Aim-traded company has mostly managed to keep them at bay.
A key staging post on the march to ubiquity is a presence in the supermarkets, known in the drinks industry as the 'off-trade'. Here, Fevertree has gained a new listing with Morrisons, as well as launching a new 150ml tonic can format in Sainsbury's and Waitrose over the past few months. Furthermore, it has now landed in British Airways cabins and lounges, where it has an exclusive listing for thirsty British travellers wanting a taste of home in the form of a gin and tonic.
Analysts at Investec expect EPS of 9.4p for 2015, up from 6.5p in 2014.
| FEVERTREE DRINKS (FEVR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 366p | MARKET VALUE: | £422m | |
| TOUCH: | 365.3-368.8p | 12-MONTH HIGH: | 378p | LOW: 134p |
| DIVIDEND YIELD: | 0.3% | PE RATIO: | NA | |
| NET ASSET VALUE: | 50.4p* | NET CASH: | £7.9m | |
| Half-year to June 30 | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 14.9 | 1.1 | 16.8 | nil |
| 2015 | 24.1 | 6.6 | 4.5 | 0.78 |
| % change | +62 | +485 | -73 | - |
Ex-div:13 Aug Payment:04 Sep *Includes intangible assets of £44.2m, or 38p per share | ||||
