Profits fizz at Vimto maker Nichols

NORTH West drinks maker Nichols today posted a bumper hike in profits as sales of its iconic Vimto brand soared around the globe.

In the six months to June 30, pre-tax profits were up 34% from £3.2m to £4.3m, while turnover increased 28.4% to £37.5m from £29.2m last time.

It was also good news for shareholders as Nichols upped its interim dividend by 8% to 4.05p a share.

Nichols said sales of Vimto in the UK grew by 13.4% during the first half, against a soft drinks market that decreased by 1.9% for the same period.

The group added that its new TV and multi-media advertising campaign themed “seriously mixed up fruit” has produced good results.

International sales of Vimto were up 22.5%, with continued growth in Africa, while first half sales into the Middle East benefited from increased product shipments compared to 2008, in order to build local stocks ahead of the month of Ramadan.

The group is also expanding into China and South Africa.

Nichols’ dispense business which supplies soft drinks on draught has delivered “significant sales and profit growth”.

Chairman John Nichols said: “Despite the economic doom and gloom, we have had an exceptionally strong first half  which makes this success even more pleasing.  We expect that we will continue to grow during the second half and for the full year, we anticipate that profits will be ahead of last year and also ahead of current market expectations.”