Fever-Tree forecast to reveal drop in profits

Fever-Tree is forecast to reveal a drop in profits on Tuesday after analysts warned it could be losing out to cheaper rivals, including Schweppes. 

The posh tonic maker said in a recent update that half-year sales grew 14 per cent to £161million fuelled in part by bumper sales in the US. But rising costs are expected to have eaten into profits. 

City brokers warn it could face a tough winter as customers rein in spending. Fever-Tree shares have fallen by two-thirds this year to £9. 

Short-sellers – who will make money if the share price falls further – are raising their bets against the firm. Full-year profits are forecast by City data firm Refinitiv to fall from £56million in 2021 to £32million this year. 

Investment bank Jefferies has warned that potential customers may switch to cheaper alternatives, while Liberum analyst Wayne Brown said half-year results would reflect a ‘difficult period’.