Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Fevertree Drinks gross profit up by almost 30%
Fevertree [LON:FEVR] has published results for the six months to 30th June this morning. Group sales are up 36% with a strong performance on mainland Europe and in the US bolstering the numbers. Logistical problems are however taking a toll, shaving some 270bps off margins, but gross profit still improved by almost 30%. The company remains upbeat about the outlook, thanks to growing interest in premium mixers and the popularity of long drinks.
#2. Pendragon profits for the first half exceeded expectations
Pendragon [LON:PDG] also released its numbers for the first six months of the year today. Profits for the first half exceeded expectations thanks to a period of sustained higher car prices, although the company also credits its performance to strategic shifts it has made including the development of its online channels. full year profits will be in the region of £55m-£60m and the company notes it is on track to achieve £85-£90m by FY2025.
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#3. Restaurant Group outperforming the wider market
The Restaurant Group [LON:RTN] issued its results for the 27 weeks to 4th July this morning. This showed solid growth over comparable periods in 2019 across most of its divisions, with concessions being the only laggard, reflecting ongoing disruption to travel. The impact of lockdowns has been that total sales are some 5% lower than they were just a year ago, but with the business outperforming the wider market there’s confidence that despite headwinds such as disrupted supply chain and labour shortages, the company remains well positioned going forwards.