We are impressed with todays YE update, further reinforcing the resilience of the Vimto brand against a difficult consumer and cost backdrop. Revenue grew 14%, with International a key stand out and PBT in line with market expectations (+16% y/y). The OoH strategic review is near complete and will be unveiled at the March finals. We anticipate a robust plan to lift profitability from FY24. There is also good news around succession planning with a new Chair appointed. Outlook commentary for FY23 is measured but in line with our unchanged expectation of flat PBT, followed by meaningful growth in FY24 as cost inflation subsides and OoH benefits flow through. The shares on a 11x EV/EBITDA rating for a branded international soft drinks company with >£55m of net-cash (14% of market cap) are undervalued - Buy.
