Vimto maker’s purple patch continues
SOFT drinks firm Nichols has said that its “exceptional” recent run of results continued during the first half of the year with profits climbing by 39% to £6m on sales up 17% to £44.2m.
The Haydock company, whose main brand is the Vimto fruit drink, said that its UK sales considerably outperformed the wider soft drinks market, which grew by 5.1% in value terms last year according to figures by AC Nielsen.
Nichols’ international sales grew by 38.6 per cent and achieved “notable” growth in Africa, Europe and the Middle East. However, the company said that overseas sales had been boosted from the earlier timing of Ramadan, when the company has traditionally enjoyed strong sales in the Gulf states.
“I’m delighted to report we have continued to increase our market share and have again significantly outperformed the sector,” said non-executive chairman John Nichols, who is the grandson of Vimto’s inventor John Noel Nichols.
“I’m also pleased our very strong trading in the first half was achieved despite tough comparatives, the prevailing economic uncertainties and an extremely competitive soft drinks sector.”
“The momentum we have built up over the past few years has certainly continued.”
The improved sales have meant that the company continued to generate cash and by June 30 it had net cash of £11.7m – up from £9.5m in the previous year. As a result, the firm has increased its interim dividend payment by 10% to 4.45p.
Nichols said that stronger sales in the second half of last year would mean that rates of sales growth would inevitably slow during the second half of 2010.
“Nevertheless, for the full year we anticipate profits will be significantly ahead of last year,” he said.
