viewFevertree Drinks

Fever-Tree shares fizz up after strong Christmas

Drink maker forecast annual profits comfortably ahead of hopes

Fever-Tree shares fizz up after strong Christmas
Strong UK sales helped boost sales of the company's tonics and mixers

Shares in Fever-Tree (LON:FEVR) fizzed up more than 6% after the drink maker forecast annual profits ahead of hopes.

The stock rose 36.5p to 622.5p as Fever-Tree said it anticipated full-year results "comfortably ahead of its expectations" after strong sales in the final two months of the year.

The group performed strongly in the second half of 2015 and forecast second-half sales ahead of the prior year period by 77%. It predicted full-year revenue of about £59.2mln, reflecting growth of 71% on 2014.

Full-year UK revenue is expected to be about 84% ahead of 2014 after a buoyant second half, with sales performance strong in both on-trade and off-trade, particularly at Christmas.

In the USA, first-half momentum continued during the second half of 2015 and annual revenue is tipped to be 65% ahead of 2014.

Strong sales growth in the rest of Europe in the first half accelerated in the second half and full-year revenue is set to be about 66% ahead of 2014.

Rest of world full-year revenue is expected to be about 50% ahead of 2014.

Chief executive Tim Warrilow said: "Fever-Tree continues to trade strongly, buoyed by a festive period significantly ahead of last year."

Broker Investec said the growth was broadly spread although Fever-Tree's most mature market, the UK, showed the strongest momentum at more than 80% given some important distribution wins in the 2015 full year.

"This better-than-expected growth increases our PBT forecasts in FY15E by 8% and we also lift FY16E PBT by 13%," Investec analyst Nicola Mallard said.




Quick facts: Fevertree Drinks

Price: 2273 GBX

Market: AIM
Market Cap: £26.89 m

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