Tim Warrillow, co-founder and chief executive of Fevertree Drinks (FEVR), sounds like someone who had bought a round of drinks just as the publican called time – a mixture of relief and regret. While justifiably pointing to the group’s low fixed cost base in his results round-up, he also conceded that on-trade sales, or lack thereof, pose something of a problem given they represent 45 per cent of the group total.
In 2019, increased admin and depreciation costs meant that reported profits pulled back slightly despite a 10 per cent increase in sales. As foreshadowed, the top-line improvement reflects continued expansion into overseas markets, set against a slight decline in domestic sales.
Since then, sales in the UK have come under pressure due to off-trade retail, though orders have picked up significantly as punters loaded up on mixers once the lockdown became a reality. That reality also means that logistics are proving a bugbear for businesses, so the group has taken action to ensure that its UK inventory is held across separate locations within its supply chain partner's estate.
FEVERTREE (FEVR) | ||||
ORD PRICE: | 1,449p | MARKET VALUE: | £ 1.68bn | |
TOUCH: | 1,447-1,453p | 12-MONTH HIGH: | 3,290p | LOW: 888p |
DIVIDEND YIELD: | 1.0% | PE RATIO: | 29 | |
NET ASSET VALUE: | 195p* | NET CASH: | £128m |
Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2015 | 59.3 | 16.8 | 11.6 | 3.08 |
2016 | 102 | 34.3 | 23.9 | 6.25 |
2017 | 170 | 56.4 | 39.5 | 10.65 |
2018 | 237 | 75.6 | 53.4 | 14.50 |
2019 | 261 | 72.5 | 50.5 | 15.08 |
% change | +10 | -4 | -5 | +4 |
Ex-div: | 14 May | |||
Payment: | 12 Jun | |||
*Includes intangible assets of £41m, or 35p a share |