Fevertree Investors Nursing a Hangover

The Week: Morningstar columnist Rodney Hobson looks at Fevertree, an approach for Cobham and ITV's Love Island

Rodney Hobson 26 July, 2019 | 9:54AM

Fevertree drinks

A reminder of the dangers of jumping on bandwagons just before the wheels drop off - or clinging to them for too long – came from mixer drinks maker Fevertree (FEVR), whose shares slumped nearly 10% after its interim results were announced.

There wasn’t actually much wrong with the figures themselves. Revenue rose 13% and earnings per share by 7% to 26.3p in the six months to 30 June as Fevertree built on its growing reputation as the fizzy drinks supplier of the moment – at least until some other fad comes along. The interim dividend shoots up 23% to 5.20p. Assuming a similar rise in the final, the total payout will be covered by earnings several times over.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Cobham PLC  
Fevertree Drinks PLC2,300.00 GBX-4.88
ITV PLC68.04 GBX0.71

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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