Why Fevertree shareholders took profits

FEVERTREE is hoping a range of low-calorie mixers will put the fizz back in its share price after it fell nearly 4pc.

Shares in the tonic water maker, popular for its gin mixers, plunged after its full-year results failed to match analyst expectations – despite profits soaring 39pc to £56.4m.

Fevertree’s share price has surged by almost 1,500pc since it listed on the London Stock Exchange in 2014. Yesterday it closed down 97p at 2595p.

But its latest results were not enough to please the City which had been expecting a better outcome.

Russ Mould, investment director at AJ Bell, said the firm had a track record of achieving results well above market forecasts. ‘When its earnings only meet and not beat expectations, you know the stock market is going to stamp and shout in disgust,’ he said.

Fevertree continued to be popular last year as a low-calorie range and new drink flavours put a rocket under sales, jumping 66pc to £170.2m.

It is also looking to target rum and whisky drinkers with an extended range of mixers for dark spirits.

Dark spirits account for 60pc of highend spirit sales around the world, compared to just 6pc for gin.

Tim Warrillow, chief executive, said: ‘We have been very pleased with the initial launch of the extended dark spirits range.’