Fevertree (LON: FEVR) share price has finally embraced the volatility after months of sideways price action. The price has surged to its 8-month high after gaining 19% this week. This positive price action can be attributed to the recently released financial results by Fevertree Drinks plc.
On Thursday, Fevertree shares are surging for the fourth consecutive day and are up 2.8% till press time. Shares of the premium drinks maker are changing hands at 1212p, which is the highest level since July 2022. The price is currently retesting a key resistance on its daily chart.
Fevertree Reports 11% Increase In Revenue
The parent company of Fever-Tree brand shared its financial results for the year ending on December 2022. According to these results, the revenue of the company increased by 11% and remained at £344. Fevertree share price surged right after the results, gaining 9.46% in a single day. The profit also came slightly above market expectations, but the adjusted profit fell by 37% from the previous year.
Fevertree reported an adjusted profit of £39.7 million in 2022, which beat the company’s expectation of £39 million. Following the results, CEO Tim Warrillow said that the company would maintain momentum in 2023 as it had the highest-ever combined market share in the UK. He also expressed the firm’s commitment to investing in its core business of mixers as well as exploring additional categories like adult soft drinks.
Fevertree Share Price Soars To 8-Month High
LON: FEVR chart shows that the price has been trading sideways since its November high of 1218p. After the announcement of 2022 financial figures, the volatility increased as the price broke above 200-day MA for the first time since January 2022.
At the moment, shares are retesting their November high and trading above this level. The price needs to close a few days above this level to show strength. The next step will be to flip this 1200p resistance into support. This will put the 1456p Fevertree share price forecast on the table, as this will be the next key level to watch after the reclaim of 1200p.
