Fevertree Drinks: is the valuation justified?
Shares in the premium mixer group rose strongly as it reported in-line results and, more significantly, reiterated guidance for the current year. With new product launches coming thick and fast and a greatly expanded distribution in the key US market, the future looks promising, but does all this justify the rich valuation?
To the great joy (and relief) of the stock market, Fevertree Drinks (AIM:FEVR), creator of superlative premium mixers, reported in-line results and re-iterated its full year guidance, sending its shares sharply higher. As well as extending its position as the number one premium mixer brand globally, Fevertree has also started to develop several key adjacent opportunities for the brand, an important aspect to help justify its sky-high valuation. Group revenue for the year ending December 2022 climbed 11% to £344.3m. That’s not a bad performance in the context of continued On-Trade disruption across their markets in the first quarter of…