Fevertree: more than tonic, but how much more?
The world's leading supplier of premium carbonated mixers reassured with its full year results reporting strong growth in overseas markets and encouraging signs outside the key tonic category. But although management offered plenty of detail on the split of its business across various markets, they seem reluctant to provide certain key information which would give prospective investors a far better idea of the key drivers of the business.
For the year ending 31 December 2019, Fevertree Drinks (LON:FEVR) saw revenue rise 9.7% to £261m. Pre-tax profit fell 4% to £72.5m reflecting a weaker second half in the UK but also continuing investment in the business. At first glance, these results look far removed from the growth engine of old, which delivered revenue growth of 39% between 2017 and 2018 and 67% the year before as the UK basked in a gin & tonic boom. However, having established a substantial presence in the US and other overseas markets the potential now seems far greater than the UK-centric business of two years ago.…