Premium content from Motley Fool Share Advisor UK
Our monthly Ice Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of income-focused Ice recommendations, to help Fools build out their portfolios.
- Part-family-owned soft drinks business that has an attractive brands portfolio.
- In its first half, sales grew by 33%, representing 10% like-for-like growth, driven by higher prices and volume growth. Profits are expected to arrive “marginally above the top end of analyst expectations” for the full year.
- While its operating margin is under pressure from cost inflation, the company reckons it can rebuild margins over the medium-term, helped by supply chain optimisation, cost management, and developing its brand portfolio.
- While long time CEO Roger White is stepping down at “a mutually agreed date in the next 12 months”, the company continues to look attractive, thanks to attractive brands, a strong balance sheet, and an excellent long-term record of dividends, profit growth and high ROCE.
- It’s currently trading at just over 15x forecast earnings, a discount to the three-year average of closer to 19.5x.