|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||26.77 - 26.77|
|52 Week Range||21.89 - 42.45|
|Beta (3Y Monthly)||0.89|
|PE Ratio (TTM)||44.84|
|Forward Dividend & Yield||0.19 (0.82%)|
|1y Target Est||N/A|
European stocks were on track for their worst single-day performance in six weeks on concerns over U.S.-China trade talks.
(Bloomberg Opinion) -- In the malaise of Brexit, Brits have been drowning their sorrows in gin and tonic. And rather than do it themselves, they’ve continued to call on the local handyman, fondly referred to as the white van man, to fix their bathroom taps.There were signs on Wednesday that that’s beginning to change.Fevertree Drinks Plc, maker of what Tatler magazine dubbed the ultimate mixers, said sales would be lower than expected this year while British home-improvement retailer Kingfisher Plc, owner of B&Q chain, said its third quarter was disappointing. Sales are even slowing at the previously fast-growing Screwfix, which primarily serves building professionals such as plumbers.They are not the only ones to bemoan the state of the British consumer.Both online appliance and electronics retailer AO World Plc and clothing and food stalwart Marks & Spencer Group Plc have cautioned that shoppers are behaving as if they are in a recession, despite wage growth running ahead of inflation and strong employment.For Fevertree, which rode the cocktail craze, the about turn has been particularly abrupt. Its shares reached an all-time high of almost 40 pounds in October last year on back of the gin boom. Up until this year, this had prompted the group to repeatedly increase its sales and profit forecasts.But fears have been mounting that we have reached “peak gin” with the shares almost halving from their high to about 21 pounds.Brits are still drinking when they go out to bars and clubs, but they’re not filling their shopping carts with the making for DIY cocktails. Part of the weakness is due to the comparison with summer 2018, when Britain was basking in a heatwave and enjoying a boost from England’s ride to the semi-finals of the World Cup soccer tournament.But it also reflects a more cautious consumer. With fewer reasons this year for a drink at home, more careful Brits don’t need as many mixers. And when they do have a tipple, they may choose a cheaper option than a pricey one made by Fevertree. That is not helped by increased competition such as a new premium mixer range from Schweppes, nor a general tendency by grocers to offer more promotions and discounts.Trading at Britain’s supermarkets has been subdued. While clothing retailers may have seen some revival in demand thanks to much colder weather than a year ago, that hasn’t been the case at the grocers. Supermarket sales were sluggish in October, according to data provider Kantar.Much will now depend on the crucial Christmas trading period. This year looks particularly challenging, given the uncertainty surrounding Brexit and the forthcoming general election, scheduled smack dab at the height of the holiday shopping season.As for Fevertree, with the slowdown in the U.K., it is under more pressure to develop its business in the U.S. The company forecasts that sales there will rise 34% this year. With the U.K. still accounting for about half of group revenue, clearly this is not enough to offset the domestic weakness.Even with the sell-off over the past 12 months, the shares still trade on a forward price-earnings ratio of over 30, an about 50% premium to the Bloomberg Intelligence global valuation peer group. Fevertree sees the slow-down in its home market as a short-term blip. But with such a fizzy valuation, there’s not much scope for further disappointment.It could be a dry January in more ways than one.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Fevertree Drinks Plc analysts are getting more realistic about their expectations for the former market-darling.Analysts at Numis, Investec and Liberum all lowered their price targets on the drinks maker after the company said on Wednesday that sales of its high-end mixers in U.K. retail outlets were below expectations in the second half. The shares rose as much as 12% as a weak performance in the U.K. had been widely anticipated and after the company said demand is growing in overseas markets including the U.S.“We still believe the shares are substantially undervalued in light of strong international growth prospects,” Liberum analyst Nico von Stackelberg wrote in a note. “Rumors of this profit warning had lingered for some time. We believe the negativity has opened up a substantial buying opportunity.”Today’s gain takes the edge off the stock’s year-to-date decline, with shares now down about 6% this year and heading for their worst annual performance since the company’s 2014 IPO. In its initial years as a public company the stock had rapid gains, rising more than 1,500% since it floated through the end of last year.JPMorgan and Citigroup had cut their price targets earlier this month, citing a more cautious view on the key U.K. market after Nielsen data on the drinks company’s so-called off-trade sales.Even after price-target cuts, the average analyst target of 2,755 pence suggests the stock could rise another 34% from the current price of 2,055 pence, according to data compiled by Bloomberg. The average target is still 30% below Fevertree’s all-time high price, reached in September 2018. The company is confident it can return to stronger growth next year, Chief Executive Officer Tim Warrillow said on a conference call Wednesday.The update “helps to draw a line under the extent of weakness for the year,” Jefferies analysts including Edward Mundy wrote in a note.To contact the reporter on this story: Lisa Pham in London at email@example.comTo contact the editors responsible for this story: Beth Mellor at firstname.lastname@example.org, Celeste PerriFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Fevertree Drinks warned its annual revenue would be lower than expected, blaming weaker demand for its premium tonics in the UK, as consumers rein in spending. Despite the downgrade, the company’s share price rose sharply on Wednesday after chief executive Tim Warrillow said sales growth would rebound next year. in the UK would be only 2 per cent this year, far lower than the 53 per cent reached in 2018 when Fevertree overtook rival Schweppes for the first time in terms of market share for mixers.
On Wednesday, Fevertree, maker of the nation’s bestselling tonic water, admitted its UK sales growth would fall from 93 per cent in 2017 and 53 per cent in 2018 to 2 per cent this year. At the same time, its UK market share, which hit 42 per cent in 2018, will decline to 38 per cent.
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can...
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
BEAT THE SYSTEM Twenty-two years ago Charles Rolls was a regular working stiff. He was just turning 40, and had no great successes to his name. He’d been a mining engineer, and didn’t like it. “I was the world’s worst engineer,” he recalls.
Fevertree, which is the second largest company on London's junior market, has shown double-digit growth over the last few years as high-end gin increasingly continued to be coupled with premium tonic water. The company, named after the colloquial term for the cinchona tree, the bark of which produces tonic water ingredient quinine, said more gin was sold during the three months of the summer in 2018 than the summers of 2014 and 2015 combined. Sales in the UK grew slightly above expectations, the company said, owing to the prolonged hot summer and as gin's popularity was boosted by the Football World Cup and the Royal Wedding in 2018.