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Highlights

  • Fevertree's H1FY24 revenue rose 0.4% YoY, reaching GBP 170.6 million despite tough consumer conditions
  • Operating cash flow surged to GBP 24.2 million in H1FY24, reversing a GBP 6.2 million deficit from FY23
  • Fevertree expects 4-5% full-year revenue growth, driven by 7-10% brand growth in H2FY24
  • The company plans GBP 90 million in investments to support its brand and improve margins

Fevertree Drinks PLC (LSE:FEVR), a constituent of the FTSE AIM UK 50 Index, is a UK-based provider of high-quality carbonated mixers.

In the first half of financial year 2024 (H1FY24), Fevertree reported a slight increase in total revenue, reaching GBP 170.6 million, up 0.4% compared to the prior corresponding period (pcp). This represents a 2% YoY growth at constant currency, reflecting the company's resilience amidst challenging consumer conditions. Fevertree made significant progress strategically, particularly in expanding its market share across key regions and driving notable margin improvements.

The company also saw a substantial turnaround in its operating cash flow, with net cash flows from operating activities improving to GBP 24.2 million, compared to a negative GBP 6.2 million in the first half of FY23. During the reported period, operating cash flow improved on the back of better working capital management since December 2023, alongside a 79% increase in adjusted EBITDA.

Company Outlook

Fevertree expects full-year 2024 revenue growth of 4-5%, fueled by 7-10% brand growth in the second half. The group also forecasts a 600bps improvement in gross margin and plans to invest around GBP 90 million in overheads to support the brand. CEO Tim Warrillow emphasised the brand's resilience in tough markets, better performance in the US and other regions, and better trading in the UK and Europe. With solid margin gains, growing market share, and ongoing innovation, the company looks forward to benefit from global trends in premium drinks.

Top 10 Shareholders

Fevertree’s top 10 shareholders account for approximately 51.39% of the total shareholding. The largest shareholder, Lindsell Train Limited, holds around 15.50% of the shares, while Fundsmith LLP follows with a 4.89% stake.

Price Performance

The stock has experienced a decline of approximately 3.70% over the past month and a more significant drop of around 28.92% over the last six months. With a 52-week low of GBX 608.50 and a high of GBX 1,247.00, the stock is currently trading below the average of its 52-week high and low. As of 28 January 2025, it closed at GBX 654.00.

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 28 January 2025. The reference data in this report has been partly sourced from EODHD/Others.