Chapel Down has delivered FY24 adj. EBITDA / PBT slightly ahead of our expectations. The outlook for FY25-FY27 is for a return to strong sales growth (we forecast 16% 3-year CAGR) and further profitability improvement. We make three key points: (1) New CEO has reinforced the excellent 10-year organic growth runway and a commitment to additional medium-term capacity. (2) International growth prospects have been enhanced by partnering with blue chip wine company Jackson Family Wines for export to the US. (3) Current trading commentary is positive. Overall, fundamentals of market leadership, strong asset backing, and structuralgrowth of English sparkling wine remain strong. There aren’t many listed drink companies with double digit organic growth, and we retain our Buy and 57p TP.
