Fevertree Drinks Share Discussion Threads

[simba_] 22/4/2020 09:16

If you're not sure what way Covid will impact the business, here are some clues:.COVID-19 will have a material impact on FY20 trading.... (not positive).Clearly the scale and impact of COVID-19 has posed some significant challenges across our regions... (not positive).With regards to trading, while the On-Trade sector is facing an extremely challenging period... (not positive).While we will not be unaffected by the current situation, especially in the On-Trade, (Not positive).Hope that helps.

[mad foetus] 22/4/2020 09:06

Off trade, Phil said that in the IC podcast in Feb that competitors were giving their products away in the run up to Xmas. So I think the margins are tighter there: if you are in a pub or restaurant it's a captive market

[simba_] 22/4/2020 09:06

Results are pre Covid.

[wetdream] 22/4/2020 09:03

Presumably on-trade margins are higher than off-trade?
Do they show that comparison anywhere?

[trying2getrichquick] 22/4/2020 09:01

Results are outstanding in this business climate. What a dynamic company Fevertree is, far superior to other tonic/soda water companies.
Hopefully, this lock down will put other water companies out of business. Getting rid of the competition is what it’s all about.

[llama1978] 22/4/2020 08:38

Then set up a short. Enjoy!

[jaf111] 22/4/2020 08:17

I agree too.....

[johndoe23] 22/4/2020 08:10

I agree, don't understand the rise this morning?!I'm neither long or short...

[mad foetus] 22/4/2020 08:09

I think these results are pretty poor, can't see why this won't go down to sub £10, sorry folks.

[llama1978] 22/4/2020 08:07

Not overvalued. US will continue to grow strongly, many markets in Europe will continue to do so. Covid-19 will have an impact but I’m not sure which way. I drink more gin at home than in the pub! Supermarket sales are through the roof. There will be a few parties once lockdown eases (which it already is in a few countries). Lindsell Train certainly are in agreement.

[sogoesit] 22/4/2020 07:46

Cheers and have a great day!

[qs99] 22/4/2020 07:41

haha, good one mate! on the gin with fever tree tonic to help ease the pain....stay safe and well sogoesit!!

Cheers

[sogoesit] 22/4/2020 07:39

No need to feel sorry QS.
We’re all adults here and can take our losses on the “gin”! ;-)

[qs99] 22/4/2020 07:36

Sorry but £1.5bn market cap for business that only has 10% revenue growth year on year and 2% decline in adjusted EBITDA and 5% decline in diluted EPS and talks of material impact of COVID? What am I missing? Surely this is way way over valued and I have no skin in the game long or short to be clear. Love the products, just don't see how this can be on such a big rating sorry DYOR

[sogoesit] 22/4/2020 07:34

Yep, seems to have come in in-line with guidance, 5% decline to 50p.
Improvement in US revenue growth now coming through at 33% supported by similar in RoW.
Let’s see what the market says.

Keep up your “robustness221; llama! Good job!

[llama1978] 22/4/2020 07:29

“At home consumption has remained robust” I like to think I’m doing my bit here...

[christh] 22/4/2020 07:25

Good results, dividend rise to 9.5p.
No worries about cash during the covid 19 season.
US growth increase.
Hopefully will get back to £20 soon

[llama1978] 22/4/2020 07:24

22nd April 2020

Fevertree Drinks plc
("Fever-Tree" or the "Group")

Preliminary Results


Fever-Tree, the world's leading supplier of premium carbonated mixers, today announces its Preliminary Results for the year ended 31 December 2019 following the FCA guidance issued on 21 March 2020 requesting public companies to delay the announcement of results.


2019
2018
Change
Revenue
£260.5m
£237.4m
+10%
Gross profit margin
50.5%
51.8%

Adj EBITDA*
£77.0m
£78.6m
(2%)
Profit After Tax
£58.5m
£61.8m
(5%)
Diluted EPS
50.26p
53.19p
(6%)
Total Dividend
15.08p
14.50p
+4%
Net cash
£128.3m
£83.6m
+53%
*Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share based payment charges and finance costs.

2019 Highlights

Financial
· Double digit revenue growth, driven largely by strong US growth
· Challenging UK market lapping exceptional comparators, especially in the Off-Trade, resulting in a 1% decline in revenue
· Gross profit margin of 50.5% (2018: 51.8%)
· Adjusted EBITDA* of £77.0m (2018: £78.6m) reflecting ongoing investment for future growth
· Profit after tax of £58.5m (2018: £61.8m)
· Diluted EPS of 50.26 pence (2018: 53.19 pence)
· Final dividend of 9.88 pence per share, bringing total dividend for the year to 15.08 pence per share (2018: 14.50 pence per share)
· Very strong balance sheet, debt free with net cash at year end of £128.3m (2018: £83.6m)

Operational
· Retained UK category leadership in both the On and Off-Trade channels despite a highly competitive UK market
· Increasing geographic spread, with a very positive performance in key growth markets including the US, Germany, Australia and Canada
· Further building of operational capability in the US, signing a key first bottling partner in the region
· Broadening the product portfolio, with good progress in our ginger range in multiple markets
· Continued to invest behind the brand for the longer term, most notably in our growth regions
· Asset light, outsourced business model providing a low fixed cost base and significant operational flexibility

Post Period End:

· Solid start to the new financial year, with Group trading in the first two months in line with the Board's expectations
· US pricing initiative announced in January very well received by On and Off-Trade customers with promising results from initial trials and new accounts secured
· While COVID-19 will have a material impact on FY20 trading, the Group is financially strong and has well balanced revenue streams diversified across regions, channels and customers.

[bamboo2] 21/4/2020 20:12

Notification of Results

Fever-Tree, the world's leading supplier of premium carbonated mixers, will publish its preliminary results for the 52 weeks ended 31 December 2019 on Wednesday 22 April 2020.

The results are being announced later than originally planned following the request from the Financial Conduct Authority (FCA) on 21 March 2020 for public companies to observe at least a two week moratorium on the publication of preliminary results.

[llama1978] 21/4/2020 16:20

Results tomorrow. Let’s see how it goes.

[sogoesit] 21/4/2020 09:16

“Quack” virus cures is not the issue.
The issue is, whether you believe it or not, drinking something with quinine in it is a one way bet.
You drink more of it and satisfy your thirst.
Or you drink more of it and it aids your cure.

Anyway, I like quinine taste so I’ve added more sub £14.

[sogoesit] 18/4/2020 06:41

Certainly appears to be behaving that way, llama.
However, long term, there are some companies which had become instantly worth 50% less. That couldn’t be right either.
Hopefully, a measured middle path will emerge.
(I trade QQQs and invest in chips and the big advantage in the US is the liquidity. In the UK placing a trade inevitably involves a limit order and wait. In the US one can generally have confidence in placing market orders.)

[llama1978] 18/4/2020 04:52

The US stock market is crazy. People have been piling back in, it’s back up to where it was in mid December. It’s as if coronovirus hasn’t happened. I’m thinking that can’t be right. Many companies will have felt a lot of pain over this. I think that reality will come before genuine recovery happens.