Growth in carbonated water
Travis Hoium (National Beverage): The hottest name in beverages right now is National Beverage, maker of La Croix flavored carbonated water. National Beverage's products have been hot, particularly in the last year, in part because of a consumer shift to healthier beverages. And since it's still in a can, La Croix is an easy replacement for traditional soda.
In the company's most recent quarter, revenue was up 20%, to $195 million, and net income more than doubled, to $24.3 million. You can see below that growth has shot up in the past year, and given the brand momentum, I think the growth phase is just beginning.
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FIZZ REVENUE (TTM) DATA BY YCHARTS.
The great thing about National Beverage right now is that it has volume growth and pricing power. That's growing revenue, but also expanding margins and giving leverage to the bottom line, meaning net income will rise even faster than revenue.
Top-line growth is great, but if it can be paired with even faster bottom-line growth, that's a recipe for great stock performance long term. That's what makes National Beverage a great growth stock for investors.
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