Fevertree back on track

Wednesday, 27th March 2019 14:56 - by Rajan Dhall

Fevertree updated the market with their latest prelim results for the period ending 31 December 2018, here are some of the highlights:

• Total revenue stood at £237.45 million (vs prev. £170.17 million)
• Profit after tax was £61.78 million compared to £45.51 million (vs prev. £45.51 million)
• Diluted earnings per share was 53.19p (vs prev. 39.15p)
• Sales in the UK rose 53%, while in the US they were up 21%
• The final dividend of 10.28p per share, bringing the total dividend to 14.50p per share
• Co-founder and chief executive Tim Warrillow commented: "the company is trading in line with the board’s expectations and is “well set to drive the international opportunity”

The company are going from strength to strength at the moment and in an interesting reaction on the day of the prelim release, the share price fell roughly 6.69%. Now the shares have recovered and are edging ever closer to the psychological 3000p level once more. Some say the fall was due to margins coming under pressure with the sugar tax and the cost of the US expansion. From a price perspective now the dip has been completed a break of 3000p would indicate normal service is being resumed in this massive uptrend. On the downside, 2106p could be a very important too as if it breaks it will make a lower high and lower low. All in all, I believe the trend will continue but look out for the levels on the chart for confirmation and fundamental news regarding the US expansion, plus there is always the possibility of one of the big boys coming in for a takeover.