Is Fevertree finally cheap enough to buy?
Interim results from the highly valued supplier of premium carbonated mixers weren’t accompanied by the usual statement suggesting that full year results would be materially ahead of expectations. An ‘in line’ announcement isn’t what investors have come to expect from the maker of premium mixers, whose shares have soared since listing on AIM at a lowly 134p back in November 2014.
Fevertree’s (LON: FEVR) headline revenue growth of 13% to £117m looks good in isolation, but compare that with the 45% leap reported in the six months to June 2018 and 2019’s interim performance looks rather mediocre. The more modest top line growth and an earnings increase of only 7% clearly underwhelmed a stock market which places a rich value on this business, pushing the shares down 10% on the day of the announcement. Earnings are expected to grow approximately 12% in the full year ending December 2019 so Fevertree has some ground to make up in the second half if…