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Posh mixer brand Fever-Tree (FEVR) has upgraded its profit expectations for the year after sales continued to rapidly accelerate in the second-half of 2016.

The business said in a pre-close trading update that revenues in the second half would be 75% ahead of the same period a year ago. Full-year sales are expected to be 73% higher at £102.2m as a result of the strong growth.

Sales in the UK performed “exceptionally well” in the second half, with full-year revenue expected to be about 118% ahead of 2015.

The mixer brand performed well in both the on-trade and off-trade channels, with particularly notable growth achieved over the Christmas period against a very strong prior year comparator, the group added.

Sales in Continental Europe are expected to be 39% ahead of 2015, while the US recorded growth of 55%, with the rest of the world delivered an 88% jump.

In the USA, strong revenue growth also continued during the second half of 2016, and as a result, full year revenue for the territory is expected to be circa 55% ahead of 2015.

Fever-Tree added that full-year profits would be ahead of forecasts as a result of sales being better than expected in the final two months of 2016.

CEO Tim Warrillow said: “We are delighted with our performance in 2016. Fever-Tree continues to gain market share in both the on- and off-trade and while we have experienced strong growth across all regions, our performance in the UK has been particularly notable culminating in a very strong Christmas period.

“Fever-Tree continues to pioneer and lead the premium mixer category. We believe the global opportunity remains in its early stages and will continue to be supported by the long term premiumisation of the spirits sector as well as the growing movement towards mixed and long drinks. As a result, the board remain confident of the future outlook for the business.”

Fever-Tree added that its year-end net cash position would also be ahead of board expectations.

The upgrades has sent the stock soaring once again this morning, rising 6.6% so far to a record-high of 1,210p.

Morning update

Profits slumped 38% at PZ Cussons (PZC) in the first half as it took a £15m currency hit in its troubled Nigerian market. Consumers are under pressure in the African country as a result of the 40% devaluation of the Naira against the US Dollar. The exceptional costs pushed pre-tax profits at PZ Cussons in the six months to 30 November down to £24.9m, compared with £40m in the same period a year ago. Profits before exceptional items were down just 4.5% to £40.2m.

Revenues at the consumer goods group behind brands such as Imperial Leather and St Tropez also fell 2% in the period to £378.2m. The group said its UK performance in the washing and bathing division had been “robust”, thanks to new product launches for Imperial Leather, Carex and Original Source.

Chairman Caroline Silver said: “The group has faced a backdrop full of challenges across most of the markets where we operate. This was by no means unexpected and so, despite this, the results presented today reflect a solid performance with revenue and profit only slightly lower than the previous period.

“The strength and breadth of the group’s product portfolio has allowed us to hold or grow the share of our brands in our main markets and product categories. We intend to reinforce this in the second half of the financial year with a number of major launches and relaunches taking place. Our ability to be agile and nimble is a core strength and a differentiator against our larger competitors.

“In Nigeria, consumers are faced with an almost doubling of costs for everything they have to buy and in this environment they turn strongly to brands that they know, love and trust. Our diverse range of well-established products across multiple categories are well price positioned with good availability across the country.”

She added that PZ Cussons remained on track to deliver full-year expectations. The group increased the interim dividend by 2.3% to 2.67p per share as a result.

However, shares in the group plunged 8% to 309.6p as markets opened this morning.

Yesterday in the City

Travel concession group SSP (SSPG) led the way yesterday, with shares flying 4.7% higher to 409.5p ahead of its Q1 trading update on Thursday.

It wasn’t quite as good of a day for most other grocery/fmcg stocks, with a majority falling into the red.

Tesco (TSCO) slumped 1.6% to 195.1p, with news in the weekend papers that a hedge fund Delores has taken a big short position against the supermarket.

Sainsbury’s (SBRY) also fell 1.1% to 259.8p, Ocado (OCDO) was down 0.8% to 259.9p and Marks & Spencer (MKS) finished 0.8% behind at 334.4p.

Morrisons (MRW) just about kept its head above water, nudging up 0.1% to 240.2p.

Other losers included Dairy Crest (DCG), Greencore (GNC) and Cranswick (CWK), falling 2.4%. 2.2% and 1.9% respectively.

PZ Cussons also fell 1.1% to 333.8p ahead of this morning’s results.

McColl’s (MCLS) had a better day, trading 3.8% higher at 183.8p, and Nichols (NICL) jumped 1.5% to 1,596p.

The FTSE also fell back 0.7% to 7,149.66 points as the US dollar retreated as Donald Trump’s presidency started with promises of protectionism and isolationism.

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