UK sales lift Vimto maker Nichols
UK sales are driving growth at Vimto maker Nichols after exchange rates and shipping schedules held back international sales.
In the six months to June 30 revenues increased by 3% to £56.6m. Pre-tax profits were up 11% to £10m, after stripping out the £8m cost of losing a court case in Pakistan.
The action was brought by Gul Bottlers which was claiming for loss of profit on a contract it signed in 2011 to produce and distribute Vimto in Pakistan.
Nichols said UK sales were up 8% to £43.8m, ahead of the wider soft drinks market which was up by 2.7%. But international sales were down 12% at £12.8m. The company said this was down to a shift in the timing of shipments of Vimto concentrate to the Middle East. Sales of the finished product in the region were up 7%. Stronger sterling rates also affected international sales, accounting for 3% of the decline.
Chairman John Nichols said: “Nichols has delivered another strong performance during the first half of 2014. I am pleased to report that once again the group has delivered double digit growth in pre-exceptional profit and earnings per share. The board anticipates that full year performance will be in line with current expectations.”
The company is recommending an interim dividend of 7.1p per share, up 12%.
