Fevertree Drinks Share Discussion Threads

[christh] 14/7/2020 09:50

14 July 2020 | 08:05am
StockMarketWire.com - Drinks maker Fever-Tree said its outlook remained uncertain, even as it reported ongoing growth in its off-trade business during Covid-19 lockdowns.

In the UK, Fever-Tree's off-trade sales for the 12 weeks to 14 June rose 34% year-on-year.

In the US, Nielsen data, which covered just under half of Fever-Tree's US off-trade sales, showed sales rose 89% year-on-year for the 12 weeks to 13 June, reflecting 'the increased at-home consumption during lockdown, as well as the benefit of incremental distribution that was secured over the course of 2019,' the company said.

In Continental Europe, increased uncertainty during the last few months had led some of the company's importers to de-stock, which had impacted its European sales over the first half of the year.

Looking ahead, as reopening measures continued, demand off-trade was likely to wane in favour of on-trade, which referred to demand from pubs and clubs.

'However, the pace and quantum at which this will occur is likely to be gradual as the on-trade still has to contend with cautious consumers, social distancing and therefore lower capacities,' it added.

Fever-Tree also said it had acquired Global Drinks Partnership (GDP), its sales agent in Germany, for about €9.5m.

[trying2getrichquick] 14/7/2020 09:49

True share price won’t happen for a couple of years, once things are back to normal. By then, I can see this at £3.50 to £4+
They are a very intelligent company and will spend, only when the ROI is high.

[sogoesit] 14/7/2020 09:46

Thanks for feedback, gents.
I didn't think acquiring a distributor would be significant... so thanks for that perception, Apad.
Agree Shanklin (I saw the receivables issue, too).
Yes, I get the caution, juzzer, but aren't we all being cautious in this environment?

I may add lower down as I think the wording was more cautious than the previous statements but that's just my gut feeling.

[juzzer100] 14/7/2020 09:28

I think the update was perfect to manage expectations. Massive rises in off-trade were tempered by wipe out of on-trade, the effects of which are not as visible. Very responsible RNS. Mgt do not want huge share price fluctuations... again!I say again, this is a long term hold.

[christh] 14/7/2020 09:09

SNIPPETS
---------------------------------------------
The Group's Off-Trade sales have grown very strongly in the US, where the increasing popularity of the Fever-Tree brand is driving category growth. Nielsen data, which covers just under half of Fever-Tree's US Off-Trade sales, has reported 89%(2) year-on-year sales increases for the last 12 weeks to 13(th) June, reflecting the increased at-home consumption during lockdown, as well as the benefit of incremental distribution that was secured over the course of 2019.
We have also been encouraged by the successful implementation of the pricing and format optimisation, gradually introduced on-shelf between March and June 2020.

In Continental Europe, while Off-Trade sales have been robust across the region, the impacts of COVID-19 have been more significant in the South which is more reliant on the On-Trade relative to Northern Europe. The increased uncertainty during the last few months has led some of our importers to de-stock, which has impacted our European sales over the first half of the year. However, we are confident that our prevailing brand strength will support our growth in the region as countries continue to emerge from lockdown.

In the ROW region, we continue to deliver strong Off-Trade sales and secure new distribution, particularly in Australia and Canada, with our focus turning to the On-Trade as it begins to re-open.

[shanklin] 14/7/2020 08:06

Sogoesit

What is this fashion for trading statements that say nothing about revenues or profits. Completely disgraceful.

And why not state that their German distributor was going out of business so it was less bad to buy it than let it go under?

All IMHO.

[apad] 14/7/2020 07:47

soegoesit

Same old, same old in FEVR rns until.....

"Fever-Tree is pleased to announce the acquisition of Global Drinks Partnership "GDP", the Group's sales agent in Germany."

Brands acquiring distributors is terrific. TSTL doing it as well.

Luv it!

apad

[sogoesit] 14/7/2020 07:45

This morning’s TS looks about as clear as Madagascan Cola to me but that may be due to looking through a fog of gin.
Anyone see anything unexpectedly encouraging (apart from Neilson data)?

[llama1978] 10/7/2020 13:59

These updates are close to pointless. They just change with the share price. With no news from the company if the price goes to £26, they will come out saying target £29. I target to hold for some time as they will come through this strong, money in the bank to grow the company at an accelerated pace. Would be good to see US H1 versus last year.

[aimingupward2] 10/7/2020 13:04

HSBC have raised their tp from 2090p to 2550p - close to Liberum's 2570p. As I said a couple of days ago, probably 'a bit behind the curve' still especially if the Neilson data out today really is very positive for FEVR.

[trying2getrichquick] 10/7/2020 10:44

Neilson data out today, looking VERY good for Fevertree-

With pubs still closed, beer, wine and spirits sales swelled to a rise of 79.9% compared to the same period last year, which represents an increase of 78.8% year-to-date.

[christh] 08/7/2020 13:13

UPGRADE
----------------------
FEVR Fevertree Drinks Plc Liberum Capital Buy 2,570

[aimingupward2] 08/7/2020 11:31

Big reappraisal of FEVR by Liberum who raise their tp from 1675p to 2570p

Probably still ‘behind the curve’ in spite of that.

[moulah] 07/7/2020 20:29

Any news on the 1st quarter results/sales? Thanks.

[llama1978] 06/7/2020 17:13

I’ve had worse quarters... up 100%. More to come I would think.

[jimsyone] 04/7/2020 11:54

Goldman Sachs - Berenberg - Peel Hunt - Liberum - Cannaccord give the top fund managers picks

[llama1978] 04/7/2020 10:59

I hope so. Sounds like US is going well. Hopefully they like sitting at home drinking booze as much as we do during “lockdown̶0;

[growthpotential] 03/7/2020 20:02

These be back at 4000 in 1-2 years

[trying2getrichquick] 03/7/2020 18:37

Me too, I’m drinking a bottle every night with my dinner. Raspberry & Rose Soda, yum!

[llama1978] 03/7/2020 13:38

Fever tree also have a habit of publishing results or updates at a different time to that which is stated! I hope the increase today implies great things to come. Certainly outperforming the FTSE. I’ve drunk about 6 bottles this week so I’m doing my bit :)

[trying2getrichquick] 03/7/2020 13:31

Maybe a RNS coming with a trading update if sales have materially changed.

[trying2getrichquick] 03/7/2020 13:29

Lol, leaky, great word!

[sogoesit] 03/7/2020 11:14

Presumption.
Historical announcement dates are transparent to the market (last year Interims were published on 23 July).

However, if you go to FEVR's Financial Calendar page, here , Interims are stated to be announced in September.
Normally a company will give notice of the announcement.
Has COVID interfered with this year's timings, noting that Preliminary's were published one month late?
Is the market confused?
Who knows? AIM is renowned for being "leaky".

[trying2getrichquick] 03/7/2020 09:40

Well by the look at today’s share price, up 5%, it’s imminent & VERY positive.
It’s outrageous that insider trading must be happening for this to go up by so much in one day. It’s not fair on P.I. like you & I.

[llama1978] 26/6/2020 14:50

It is very quiet. Everyone so happy the price has gone from £8.90 to £21.40, probably getting drunk on g&t and enjoying the fine weather. That would sum up my week anyway. Presume we should be getting an update at some point in July, anyone know the date?