#enterprise Fever-Tree forecast to reveal drop in profits
Fever-Tree forecast to reveal drop in profits after analysts warn it could possibly be dropping out to cheaper rivals, together with Schweppes
Fever-Tree is forecast to reveal a drop in profits on Tuesday after analysts warned it could possibly be dropping out to cheaper rivals, together with Schweppes.
The posh tonic maker mentioned in a current replace that half-year gross sales grew 14 per cent to £161million fuelled in half by bumper gross sales in the US. But rising prices are anticipated to have eaten into profits.
Warning: Fever-Tree shares have fallen by two-thirds this 12 months to £9
City brokers warn it might face a troublesome winter as prospects rein in spending. Fever-Tree shares have fallen by two-thirds this 12 months to £9.
Short-sellers – who will earn cash if the share value falls additional – are elevating their bets in opposition to the agency. Full-year profits are forecast by City knowledge agency Refinitiv to fall from £56million in 2021 to £32million this 12 months.
Investment financial institution Jefferies has warned that potential prospects could change to cheaper options, whereas Liberum analyst Wayne Brown mentioned half-year outcomes would replicate a ‘tough interval’.