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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.
“Best Buys Now” Pick #1:
A G Barr (LSE: BAG)
- Part family-owned soft drinks business that owns attractive brands.
- Grew like-for-like sales by 15.9% in latest fiscal year.
- Impressive momentum from its Funkin brand, the UK’s leading ready-to-drink cocktail brand, which grew revenues by 16%.
- The company says that 9.6m UK consumers drink cocktails out of home, a 1.6m increase since pre-pandemic, which has helped the category increase by 13% to £686m since 2019. This looks like a growth avenue for the company.
- Recent acquisition of Boost “has performed exceptionally well”.
- While operating margins declined from 14.9% to 13.6% due to inflationary cost pressure and higher investment, the company believes it can rebuild margins over the medium-term.
- Currently trading at around 16x forecast earnings, a discount to the three-year average of closer to 20x.
“Best Buys Now” Pick #2:
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This post was originally published on Motley Fool
