Cost pressures grow for industry as Fevertree warns on Ukraine
Other companies may see a knock-on effect from rising commodity prices, fund manager says
Company
LON:FEVR
Fever-Tree is the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, with distribution to approximately 50 countries internationally. Based in the UK, the brand was launched in 2005 by Charles Rolls and Tim Warrillow to provide high quality, natural mixers which could accompany the growing demand for premium spirits. The Group now sells a range of 12 differentiated flavours to hotels, restaurants, bars and cafes ("On Trade") as well as supermarkets and off-licenses for retail purchase ("Off Trade"). Approximately 70 per cent. of the Group's sales were derived from outside of the UK in FY13 with the key overseas markets being the US, Spain, and Belgium.
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Other companies may see a knock-on effect from rising commodity prices, fund manager says
The shares opened 5.6% lower as the payout plans and outlook statement failed to inspire
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It promises to be a busy enough morning, though the US interest rate decision will likely loom large.
The mixer maker releases full-year results on Wednesday.
The broker does not see current cost headwinds affecting long-term growth
The maker of mixed drinks expects margins to remain flat in 2022, resulting in an EBITDA range of between £69mln-£72mln
Deutsche Bank is back on board with Fevertree Drinks, the stock market darling that lost some of its fizz during the pandemic
Revenue grew in the first half of the year and sales momentum is expected to continue in the next months
“We think further share price outperformance continues to rely on Fevertree delivering ahead of the sales guidance,” Citi said in a brief summary of research on the group
The company's formidable brand means it is able to charge prices that would drive anyone to drink but margins are under pressure because of rising raw material and production costs
Lip-smackin', thirst-quenchin', ace-tastin', motivatin', good buzzin', cool walkin', high talkin', fast livin', ever givin', tooth-rottin', waistband-bustin' .....Pepsi!
The posh mixers producer said it is trading in line with expectations for the year to 31 December
Demand for the off-trade segment is expected to switch to the on-trade as restrictions are eased worldwide
The posh mixers producer grew the off-trade and e-commerce channels to mitigate the damage of hospitality closures
Revenues for the year to December to be between £235mln and £243mln assuming no further significant lockdowns
Analysts said the more profitable on-trade demand, which includes restaurants and bars, is at risk
The outlook is a bit cloudy as the company does not know how consumers will react to the easing of lockdown restrictions
The on-trade channel, consisting in restaurants and pubs, has been hit by closures
On-trade customers, representing 45% of sales, have been “severely” impacted by lockdowns, while the off-trade channel remains strong