Proactiveinvestors Australia Fevertree Drinks Proactiveinvestors Australia Fevertree Drinks RSS feed en Thu, 20 Jun 2019 21:28:47 +1000 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[RNS press release - Total Voting Rights ]]> Wed, 05 Jun 2019 01:35:26 +1000 <![CDATA[RNS press release - Result of Annual General Meeting ]]> Sat, 25 May 2019 02:11:13 +1000 <![CDATA[RNS press release - AGM Statement ]]> Fri, 24 May 2019 16:00:05 +1000 <![CDATA[RNS press release - Block Admission Application ]]> Thu, 23 May 2019 16:00:09 +1000 <![CDATA[RNS press release - Block Listing Return ]]> Wed, 01 May 2019 17:44:48 +1000 <![CDATA[RNS press release - 2018 Annual Report and Notice of AGM ]]> Tue, 23 Apr 2019 16:00:08 +1000 <![CDATA[RNS press release - Notification of Major Holdings ]]> Thu, 04 Apr 2019 03:03:38 +1100 <![CDATA[RNS press release - Notification of Major Holdings ]]> Fri, 29 Mar 2019 19:31:16 +1100 <![CDATA[RNS press release - Preliminary Results ]]> Tue, 26 Mar 2019 18:00:11 +1100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Wed, 13 Feb 2019 04:47:18 +1100 <![CDATA[RNS press release - Trading Update ]]> Thu, 24 Jan 2019 18:00:03 +1100 <![CDATA[RNS press release - Notification of Trading Update ]]> Fri, 11 Jan 2019 18:00:04 +1100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Fri, 07 Dec 2018 18:00:06 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Fri, 02 Nov 2018 02:34:48 +1100 <![CDATA[RNS press release - Block Listing Return ]]> Wed, 31 Oct 2018 21:16:49 +1100 <![CDATA[RNS press release - Appointment of Nomad and Joint Broker ]]> Wed, 31 Oct 2018 18:00:07 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Fri, 19 Oct 2018 18:12:11 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 17 Oct 2018 03:16:04 +1100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Thu, 11 Oct 2018 17:00:09 +1100 <![CDATA[RNS press release - Total Voting Rights ]]> Fri, 31 Aug 2018 19:40:05 +1000 <![CDATA[RNS press release - Result of Placing in Fevertree Drinks PLC ]]> Tue, 07 Aug 2018 16:57:17 +1000 <![CDATA[RNS press release - Proposed placing of shares in Fevertree Drinks PLC ]]> Tue, 07 Aug 2018 01:43:03 +1000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 07 Aug 2018 00:00:19 +1000 <![CDATA[RNS press release - Interim Results ]]> Tue, 24 Jul 2018 16:00:09 +1000 <![CDATA[News - How Fevertree usurped Britvic and Schweppes to pop to the top of the UK tonic market ]]> When Fevertree Drinks PLC (LON:FEVR) listed in November 2014, it was valued at just over £150mln.

Around that time, its peer – notice the absence of the word rival – Britvic PLC (LON:BVIC) had just seen its shares reach all-time highs, valuing the then 169-year-old firm at just shy of £2bn.

Fast forward to today and Fevertree is worth more than £4bn while Britvic’s market cap growth has only just about bettered inflation.

READ: Fevertree fizzes to all-time high after latest results

Few would have seen this coming, including the boards of Britvic and Schweppes, the two previously dominant players in the tonic market.

Schweppes can almost be forgiven: it was by far the largest maker of tonic around the world and so its strategy was more about protecting its market share – ‘if it ain’t broke, don’t fix it’.

Britvic, on the other hand, had the chance to be a bit riskier, something it should have been doing if it had any genuine intention of usurping Keurig, Dr Pepper-owned Schweppes.

With those two giants of the tonic game resting on their laurels, Fevertree swept in with its simple philosophy: if three-quarters of your drink is the mixer, “mix with the best”.

Gin renaissance

Schweppes and Britvic continued to almost dismiss the newbie for several years despite their now-rival’s rapid growth, failing to bring out their own premium versions and ward off any threat from Fevertree.

Their approach seemed to be that tonic wasn’t the key part of a drink, that people weren’t prepared to pay more for a better mixer and that they’d developed their product as much as was worthwhile.

By this point, Fevertree was seeing sales soar in the UK, riding the wave of gin’s renaissance. It also began to attract the fancy bars and restaurants which didn’t want to be seen as stocking the ‘cheap’ options.

It was when Fevertree surpassed the £1bn mark that incumbent giants got their acts together. Britvic “refreshed” its tonic water and other mixers in late 2016, while Schweppes brought out its own premium mixers under the ‘1783’ name the following year.

Schweppes used to be the byword for tonic, not anymore

Truth be told, they were too late to the party. The shift towards ‘premiumisation’ had already happened and Fevertree was the now go-to brand in the world of fancy mixers.

The company, which was only founded in 2005, is now the most popular mixer brand in UK supermarkets, accounting for almost half of all off-trade tonic sales.

Even in its latest interim results after several years of strong growth, Fevertree’s sales still jumped by 45% and it is targeting America next, where the estimated market size is several times that of the UK.

How the big boys must regret underestimating the competition and misreading consumer trends.

Moreover, Fevertree, which is now worth twice as much as Britvic, could’ve been taken out for a relative pittance only a couple of years ago. They must regret that even more.

Tue, 24 Jul 2018 12:55:00 +1000
<![CDATA[News - Fevertree fizzes to fresh all-time high as it upgrades full-year guidance once again ]]> Fevertree Drinks PLC (LON:FEVR) fizzed to a fresh all-time high at the opening bell on Tuesday as the posh tonic maker returned to its usual ways with a full-year guidance upgrade.

The Chelsea-based company, one of the biggest on AIM, has made a habit of telling investors that full-year results will be better than expected, although it disappointed investors in May’s trading update when it failed to do so.

READ: Jefferies cites US potential as it hikes Fevertree price target up to £40

That seems to be a blip though, with Fevertree, which also makes a Madagascan Cola and Sicilian Lemonade, claiming that full-year numbers will be “comfortably ahead” of forecasts.

Shares popped above 3,900p shortly after the bell, although they retreated to 3,680p in late afternoon trading - still a healthy 6.4% gain for the day.

For the six months ended June 30 2018, Fevertree reported a 45% jump in revenue to £104.2mln (H1 17: £71.9mln). Adjusted underlying earnings (EBITDA) climbed 35% to £34.0mln (H1 17: £25.2mln).

Those numbers prompted a 40% hike in the interim dividend, which now stands at 4.22p (H1 17: 3.01p). With more than £62mln of cash in the bank, Fevertree can easily afford that.

Much of the growth came from the £4bn firm’s home (and most mature) UK market, where sales rose 73% to £58.0mln (H1 17: £33.6mln).

US management team in place

Of much interest to shareholders will be the performance in the US, where a lot of growth is expected over the coming years as Fevertree’s establishes itself in one of the world’s largest drinks markets, estimated to be seven times that of the UK.

To try to tap into this, the company has recently opened a US headquarters in New York, having previously relied on importer Brands of Britain to sell its tonics, lemonades and ginger beers in the US.

Sales across the pond rose 15% to £15.1mln (H1 17: £13.2mln) in the first half but the market will be looking for those figures to soar over the next year or two as the new direct management team gets it feet under the table.

Potentially helping it to meet those lofty expectations will be the on-trade (bars and restaurants) distribution deal it signed with SGWS recently – the largest distributor of wines and spirits in North America.

‘Major progress’

“The first half of 2018 has been one of major progress for Fever-Tree,” said chief executive and co-founder Tim Warrillow.

“The group delivered a strong performance, most notably in the UK, as we continue to drive and lead the evolution of the wider mixer category.

“We have successfully launched our wholly-owned US operations with a talented team recruited and now in place. The exclusive distribution agreement with SGWS, the largest North American wine and spirits distribution company, is a significant endorsement and provides a strong platform for Fever-Tree US in 2019 and beyond.”

He concluded: “Given the strong performance in the first half of the year, the board anticipates that the outcome for the full year will be comfortably ahead of its expectations.”

--Updates for share price--

Tue, 24 Jul 2018 08:37:00 +1000
<![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 11 Jul 2018 16:00:05 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 03 Jul 2018 02:43:34 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 03 Jul 2018 02:41:17 +1000 <![CDATA[News - Jefferies cites significant US potential as it hikes price target for Fevertree up to £40 ]]> US investment bank Jefferies has hiked its price target for Fevertree Drinks PLC (LON:FEVR) by a third, citing the huge potential for the posh tonic maker in the US.

The majority of Fevertree’s sales come from the UK, but the potential market across the pond is estimated to be seven times larger.

READ: Fevertree fails to upgrade expectations for first time since listing

To try to tap into this, the Chelsea-based firm has recently opened a US headquarters in New York, having previously relied on importer Brands of Britain to sell its tonics, lemonades and ginger beers in the US.

With the new direct management team now in place, analyst Edward Mundy reckons Fevertree is well-placed to take advantage of the nascent premium mixers market over there.

“Our proprietary bartender survey reinforces our confidence in the US growth opportunity,” wrote Mundy in a note.

“Conditions are in place for the growth of the premium mixers category over the med-term with (a) increasing focus on long drink mixability (b) appetite for premium gin/spirits to be mixed with premium mixers (c) consumer willingness to pay extra for premium mixers (d) sufficient physical space behind the bar to stock premium mixers.”

Not much US competition

Fevertree, particularly in the beginning of its journey, has faced very little competition from other premium drinks makers in the UK.

Mundy believes the market conditions are also “favourable” in the US, with the merger of Keurig and Dr Pepper Snapple – which owns Schweppes and Canada Dry – making for a “benign” trading environment.

He notes that Coca-Cola Company (NYSE:KO), a big threat to any drinks maker, doesn’t have a “sizeable” premium mixer brand either.

“The opportunity for premium mixers in the US is the largest growth opportunity for FEVR over the med-term given (a) the size of the US (7x larger than UK) (b) a market that is rapidly premiumising (c) significant disconnect between premium spirits and a commoditised mixers category (d) favourable industry backdrop,” added Mundy.

Price target up to £40 but could go higher

The analyst has upped his price target by £10 to £40, reflecting this “med-term opportunity” and accounting for some of the risk of tapping into a new market.

That said, Mundy reckons that shares in the AIM-listed firm could surpass £60 if it is able to “partially emulate” its success here in the UK.

Fevertree shares are broadly flat on Friday morning at £33.50. They were sold at 134p when the company floated on the junior market back in November 2014.

Fri, 22 Jun 2018 09:29:00 +1000
<![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 22 May 2018 18:44:45 +1000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Fri, 18 May 2018 22:01:30 +1000 <![CDATA[RNS press release - Result of Annual General Meeting ]]> Thu, 17 May 2018 22:15:43 +1000 <![CDATA[RNS press release - Appointment of Non-Executive Director ]]> Thu, 17 May 2018 16:00:09 +1000 <![CDATA[RNS press release - AGM Statement ]]> Thu, 17 May 2018 16:00:06 +1000 <![CDATA[News - Fevertree fails to upgrade expectations in a trading update for first time since listing ]]> For the first time since joining AIM, Fevertree Drinks PLC (LON:FEVR) has failed to upgrade its outlook for the year in a trading statement.

In an update ahead of its annual general meeting later today, the posh tonic maker said it is “trading in-line with market expectations”.

READ: Fevertree trading “in-line”

With still a sizeable chunk of the year left, most companies would be content with that position, but not Fevertree, where investors are more accustomed to trading being “materially” or “comfortably” ahead.

Analysts are expecting the London-based company to report earnings per share of around 43.5p this year, giving the stock a 2018 price-to-earnings ratio of more than 60.

Given that the average company will have a PE ratio of somewhere between 15 and 25, it is obvious there is a lot of future growth baked into the share price.

That’s why shares are down 7% today to £27.12; good is not good enough for Fevertree when the market is expecting great.

The share price had also been climbing into today’s announcement, with investors clearly backing the drinks maker to post something better than ‘just alright’.

Attention switches to US now

The UK continues to be the key sales driver, but the company will be looking to the US – where the estimated market is several times the size of that in its home country – for future growth.

So far, things have been a bit slow across the pond, but a US-based team is now in place and ready to take over the reins on June 1.

Investors will be hoping a permanent presence over in the States will help to drive sales in a potentially huge and lucrative market, for which it has been developing new products such as its Madagascan Cola and Spiced Orange Ginger Ale drinks.

“We remain of the view that there is a significant opportunity for Fevertree with the growth engine now more likely to be in the US,” wrote Shore Capital analyst Phil Carroll in a note to clients.

Time to invest?

He adds that today's falls could be a chance for long-term holders to snap up some more of the stock.

“The lack of upgrades to market expectations may put a dampener on the share price today, especially considering it has been rising into today’s statement.

“For some investors this may present an opportunity when considering the long-term opportunity in Fevertree if it executes its broader ambitions.”

Board remains confident

At the company’s AGM in the City this morning, chairman Bill Ronald reassured investors that despite not upgrading forecasts, “the board remains very confident” in the company’s outlook.

The 62-year-old urged investors not to “over-interpret” what was written in the update.

Unsurprisingly, several investors asked about what’s going on over in the US, given that Fevertree is taking direct management of its distribution network and marketing efforts in two weeks’ time.

Co-founder and chief executive Tim Warrillow said the firm – which has seen its share price soar more than 1,500% since its debut on AIM just over three years ago – had put in years of “painstaking but successful” ground work across the pond.

He added that Fevertree is yet to roll out its Madagascan Cola in the States while it builds the brand’s reputation with its flagship tonic waters, but it would look to do so next year.

The delay may surprise investors, given the sheer size of the US market for dark liquors, but the demand for clear liquor is far from weak: Warrillow estimated that the nascent US gin market is still twice the size of the UK’s, while vodka is even more popular.

-- Updates for share price and AGM notes --

Thu, 17 May 2018 10:17:00 +1000
<![CDATA[News - Fevertree Drinks loses fizz as in-line trading news disappoints investors ]]> Fevertree Drinks PLC (LON:FEVR) shares lost some of their fizz on Thursday after the mixer drinks firm said current trading is in line with market expectations, disappointing investors who have been used to more upbeat comments from the fast-growing group.

In mid-morning trading, Fevertree shares were down 5.6% at 2,761p.

READ: Fevertree Drinks shares sink as co-founder offloads bigger-than-expected stake

In a statement to be delivered at today’s annual general meeting, Bill Ronald, chairman of the AIM-listed firm said: “The Group's performance in the year to date has been encouraging and at this early stage in the year we are trading in line with market expectations for the full year ending 31 December 2018.”

The chairman added that the first four months of 2018 has seen further positive progress, most notably in the UK where - as market leader - the company is well positioned as the wider mixer category continues to evolve.

He also noted that the transition to wholly-owned operations in the US is continuing to plan.

“We have made excellent progress, with the Fever-Tree US team now in place ahead of taking direct management of our distribution network and marketing effort on 1 June 2018,“ Ronald said.

Thu, 17 May 2018 08:08:00 +1000
<![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 10 Apr 2018 02:06:32 +1000 <![CDATA[RNS press release - Directorate Change ]]> Fri, 06 Apr 2018 01:00:01 +1000 <![CDATA[RNS press release - Total Voting Rights ]]> Thu, 29 Mar 2018 18:35:38 +1100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Wed, 28 Mar 2018 17:00:07 +1100 <![CDATA[RNS press release - 2017 Annual Report and Notice of AGM ]]> Tue, 27 Mar 2018 00:25:31 +1100 <![CDATA[RNS press release - Result of Placing in Fevertree Drinks PLC ]]> Fri, 23 Mar 2018 18:00:05 +1100 <![CDATA[News - Fevertree Drinks shares sink as co-founder offloads bigger-than-expected stake ]]> Fevertree Drinks PLC (LON:FEVR) shares lost their fizz on Friday after one of its founders sold a 2.6% stake in the premium tonic water maker.

Deputy chairman Charles Rolls offloaded almost double the number of shares he originally intended to sell after receiving significant demand from institutional investors.  

READ: Fever-Tree's 2017 earnings and sales jump but shares fall flat on profit-taking

Shares dropped 5.4% to 2,796p in morning trading.

Rolls, who is co-founder with chief executive Tim Warillow, now owns a 8.6% stake in the company.

Since the company began trading on the stock market in late 2014, its shares have surged by more than 1,000%. In the past 12 months, shares have jumped by more than 90%.

Growing demand for gin and tonic boosted its 2017 results with adjusted underlying earnings (EBITDA) rising 64% to £58.7mln and revenues increasing 66% to £170.2mln.

In the annual results statement last Tuesday, Warrillow said the company has had an "encouraging start to 2018 and remain confident that we are increasingly well positioned to deliver further growth across the business".

Fri, 23 Mar 2018 09:09:00 +1100
<![CDATA[RNS press release - Proposed placing of shares in Fevertree Drinks PLC ]]> Fri, 23 Mar 2018 03:35:01 +1100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Wed, 21 Mar 2018 18:00:08 +1100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Thu, 15 Mar 2018 02:41:41 +1100 <![CDATA[RNS press release - Preliminary Results ]]> Tue, 13 Mar 2018 18:00:04 +1100 <![CDATA[News - Fever-Tree's 2017 earnings and sales jump but shares fall flat on profit-taking ]]> Fever-Tree Drinks PLC (LON:FEVR) served up a 64% jump in full year earnings as growing demand for gin in the UK boosted sales of its tonic water.   

Adjusted underlying earnings (EBITDA) rose to £58.7mln in 2017 from 335.8mln the previous year.

Revenue gained 66% to £170.2mln from £102.2mln, driven by a 96% surge in UK sales. The UK is the company’s largest market, accounting for 52% of sales last year. 

Sales were supported by Britain’s love of gin. Data from the Wine and Spirit Trade Association showed sales of gin grew 27% to 51 million bottles last year.

Chief executive and founder, Tim Warrillow, said the company has had an "encouraging start to 2018 and remain confident that we are increasingly well positioned to deliver further growth across the business".

Good but not good enough for investors

Despite the strong results and positive outlook, shares fell 5.4% to 2,556p in morning trade.

“The market has become rather accustomed to Fevertree beating expectations and upgrading guidance (January’s was the sixth in a year), so when results are just moderately ahead, things look a little flat," said Neil Wilson, senior market analyst at ETX Capital.

"We note very strong results today of course but the outlook for 2018 seems a less sparkling than we are used to, with management simply saying it is ‘encouraging’, which explains why we’re seeing a bout of profit-taking in early trade."

International sales grow

Fever-Tree also delivered growth outside of the UK with sales in the US – its second largest market – up 39%. In Continental Europe, sales rose 44% while the rest of the world, which includes Australia and Canada, saw sales increase 57%.

The gross margin fell to 53.5% from 55.2% as product costs rose after introducing a new bespoke glass bottle for its mixed carbonated drinks in the second half. But the company said the margin was ahead of its expectations.

The group had net cash of £50.9mln at year end, compared to £26.9mln in 2016.

Fever-Tree hikes dividend

Fever-Tree recommended a final dividend of 7.64p, taking the total for the year to 10.65p, compared to 6.25p in 2016.

The company ended 2017 as the number one mixer brand by value in the UK Off-Trade channel.

READ: Fever-Tree bubbles higher with 2017 results set to beat forecasts thanks to “exceptional” Christmas

It was also named the best-selling and number one trending tonic water in Drinks International's survey of world's top 250 bars for the fourth year running.

“We have continued to see strong growth across all our regions with the UK once again delivering an exceptional performance culminating in Fever-Tree ending the year as the leading mixer brand at UK retail,” Warrillow, said.


Tue, 13 Mar 2018 07:29:00 +1100
<![CDATA[RNS press release - Trading Update ]]> Wed, 24 Jan 2018 18:00:04 +1100