Vimto maker predicts better annual profits performance

Vimto

Vimto drink maker Nichols said it is pleased with its financial performance and expects better profits than the previous year, in a trading update for the year to December 31, today.

The Newton-le-Willows-based firm revealed that group sales totalled £142m, an increase of 6.9% compared with the previous year.

This increase was driven by an excellent performance in the UK business, where sales grew by 12.6% to £114.6m.

During the year, the firm celebrated the Vimto brand’s 110th year and it said, once again, the brand has significantly outperformed the UK soft drinks category and gained market share.

Vimto sales increased by 12.9% during the year, compared with the total UK soft drinks market growth of 7.4% (Nielsen MAT year to December 1, 2018).

Elsewhere in the UK, sales in the Out of Home channel increased by 15.1% compared with the prior year.

This strong performance was driven by sales of both the firm’s dispensed soft drinks and frozen beverage products, which reflects the significant investment in this part of the business over recent years.

In the international business, a strong sales performance in Africa during the second half of the year delivered full year growth of 6.5% in this region.

As anticipated in othe 2017 preliminary results statement, on March 1, 2018, sales to the Middle East were down on the prior year, due to the ongoing conflict in Yemen and the timing of shipments to Saudi Arabia.

As a result, sales to the Middle East region totalled £9.6m, compared with £13m in 2017.

The group’s total international sales were £27.4m, against £31m in 2017.

Today’s statement said: “In summary, the board is very pleased with the 2018 group sales performance and expects full year profit to be ahead of the prior year, and at least in line with current market expectations.”

The market consensus is for a £31.3m profit before tax.

The group’s preliminary results will be announced on February 27.

Click here to sign up to receive our new South West business news...
Close