Premium drinks mixer supplier Fever-Tree’s shares have climbed almost 10% in morning trading after announcing a 61% rise in first half sales.
Fever-Tree shares were up 9.9% to 318.6p by mid-morning – their highest level since the November 2014 float and well over double the 134p IPO price.
The shares were driven higher by Fever-Tree’s pre-close trading update for the six months ended 30 June, which said that it anticipates seeing sales of £24m in the first half of the year representing growth of 61%.
Fever-Tree were upbeat about prospects for the second half, stating: “Given the strong sales in the first half of the year and in particular in June, the board anticipates that the results for the full year will be materially ahead of board expectations.”
Investec raised its target price from 240p to 320p on the guidance, noting that “first half profits should advance by a similar amount”
Investec analysts said: “Fever-Tree’s 1H update continues to show very strong revenue growth, although potentially benefiting to some degree from importers’ inventory build ahead of the summer.
Fever-Tree will announce its interim results on Monday 27 July.