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The Markets
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Fevertree special dividend fails to get the share price fizzing

The shares opened 5.6% lower as the payout plans and outlook statement failed to inspire

A return to the pubs and bars post-pandemic will power the upward trajectory of 2022 revenues of mixers group Fevertree Drinks (AIM:FEVR) PLC, according to the company’s prelims.

Looking ahead, the group said it expects turnover this year to be in the region of £355mln-£365mln, a 14%-17% rise from the £311mln posted for 2021.

For the 12 months to 31 December, pre-tax profits were £55.6mln, a rise of 7.7%, while underlying earnings were up 11% at £63mln.

Investors will be rewarded with a full-year dividend of 15.99p, which represents a yield of just over 1%.

Adding a bit more fizz, the company is also recommending a 42.9p special payout “reflecting our financial strength, ongoing cash generation, as well as our confidence in the continued execution of our strategy”.

At the year-end, Fevertree had £166.2mln in the bank, up 20% year-on-year.

The operating profit margin crunch – from 22.6% to 20.2% - helps explain why the share price has opened 5.6% lower.

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