Primary Recommendation

Fevertree Drinks - Purveyor of premium tonic water enjoys multiple eps upgrades

August 2016

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

It’s no exaggeration to say that AIM-listed Fevertree Drinks, a purveyor of premium carbonated mixers including tonic water (63% sales), ginger beer and ginger ale, has become the stock market equivalent of a force of nature. Since its float in November 2014 Fevertree has issued five updates, interspersed between its scheduled results and each one has stated that trading has been running significantly ahead of expectations. The reason for this phenomenon is that gross margins are so high at 52.1% that there is a big “drop through” from incremental sales.Back in January 2015 brokers were expecting eps of 7.6p and 9.6p for the years ended December ’15 and ’16 respectively but these have now been ratchete ...

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Fevertree - Chairman acquires 45,000 shares (March 2024)

Fevertree Drinks - Premium tonic water firm eyes $1.2bn US mixer market (March 2019)

Fevertree (July 2017)

Fevertree - Shares break to new highs (March 2017)

Fevertree Drinks - Brokers upgrade again (September 2016)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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