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Highlights

  • Fevertree declares a 2% increase in interim dividend for H1FY24 to GBX 5.85 per share
  • Total brand revenue for H1FY24 showed a modest 0.4% increase, reaching GBP 170.60 million
  • Gross profit for H1FY24 rose by 15.2%, driven by improved gross margin and cost-saving measures

Fevertree Drinks PLC (LSE:FEVR) is a UK-based supplier of premium carbonated mixers. The stock is a member of the FTSE AIM UK 50 Index. The directors of FEVR have declared an interim dividend of GBX 5.85 per share for the first half of FY24 (1HFY24). It marks a 2% increase over the interim dividend of 2023.

Fevertree's total brand revenue for H1FY24 reached GBP 170.60 million, a modest 0.4% increase from GBP 170.00 million in H1FY23. Gross profit for H1FY24 rose to GBP 62.00 million. It marks a 15.2% increase from GBP 53.80 million in H1FY23. This improvement was driven by a rise in gross margin from 30.7% to 35.9%, fueled by cost-saving measures like re-tendering glass supply, securing better freight rates, and adjusting pricing. Additionally, the unwinding of 2023 inventory costs played a role, with further margin recovery expected in the second half as the benefits of improved product and logistics costs in 2024 are fully realized.

Further, the company achieved a net margin of 4.4% in H1FY24 compared to 0.6% in H1FY23. Its asset turnover for the period was 0.57x compared to the industry median of 0.31x.

Company Outlook

The group has had a decent start to the second half of the year across all regions. Brand growth is expected to be around 7% to 10%, with revenue growth of 4% to 5% for the full year. Operational progress has been significant, with a projected gross margin improvement of about 600 basis points. The company plans to invest approximately GBP 90 million in overheads for the year, which is in line with expectations.

Top 10 Shareholders:

The top 10 shareholders of Fevertree hold approximately 52.49% of the total shares. Lindsell Train Limited holds the largest stake, at around 15.50%. Fundsmith LLP follows with about 6.15% ownership, as shown in the chart below.

Price Information

The stock has increased by approximately 1.54% in the past month. However, over the past six months, it has fallen by around 33.00%. The stock's 52-week low is GBX 641.46, while the 52-week high is GBX 1,247.00. As of 05 December 2024, the stock's closing price is GBX 723.5, which is lower than the average of its 52-week high and low.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 05 December 2024. The reference data in this report has been partly sourced from EODHD/Others.