Vimto maker Nichols has posted higher sales and profit figures for last years despite of challenging market and evolving regulatory requirements.
Over the 12 months to 31 December, the company reported delivering a 1.2 per cent increase in revenue to £172.8 million. Its core packaged business performed well, with revenue increasing by 4.4 per cent.
This was largely driven by strong performance within its UK division, where revenues increased by 6.3 per cent on the back of product innovation, marketing and distribution gains.
Nichols’ international division saw revenues increase marginally, although the rate of growth was impacted by a shift to a lower revenue but margin enhancing concentrate model in a number of African markets.
Meanwhile, revenue in the group’s Out of Home (OoH) operation fell by 8.2 per cent as it made further progress with its planned withdrawal from unprofitable accounts.
A continued focus on cost management resulted in the company’s adjusted operating profit increasing by 14.6 per cent to £28.9m, with margin improving from 14.8 per cent to 16.7 per cent.
Looking ahead, Nichols said it expected continued “macroeconomic uncertainty” but still anticipates that it will be able to further strengthen its performance across 2025. Trading to date is said to have been “positive” and in line with management expectations.
“At our Capital Markets Day in November, we outlined our medium-term financial ambitions and a clear roadmap for growth,” said Chief Executive Andrew Milne
“We operate in a resilient and growing category and are well positioned to capitalise on the significant opportunities across both our UK and international markets, leveraging the strength of the Vimto brand.
"Underpinned by our diversified business model, strong brand portfolio, and solid financial position, I remain confident in our ability to drive high-margin, cash-generative growth and deliver long-term value for our shareholders.”
Earlier this year, it was reported that Nichols plc is eyeing more international growth after enjoying a “strong” year as the cost-of-living crisis eased.
In a brief trading update, the soft drinks supplier noted that trading in the second half of last year had continued the positive momentum from the first and was in line with its growth strategy and medium-term financial ambitions.
Vimto has a huge international reach and is particularly popular in cordial form in the Middle East during Ramadan.
