Vimto maker weighs in with £31m profit for last 12 months
Operating profits at Vimto manufacturer Nichols increased by just over ten per cent to £31.6m last year.
The Newton-le-Willows firm announced its preliminary results for the year this morning.
Revenues at the company were up by seven per cent to £142m.
John Nichols, non-executive chairman, said: “Nichols delivered a strong performance in 2018, achieving growth in revenue, profit and earnings per share, resulting in a 14.5% increase in the final dividend.
“The UK sales performance was driven by the strength of the Vimto brand, now in its 110th year and continuing to outperform the wider soft drinks market, in addition to the increasing growth opportunities in the Out of Home sector following successful investment in this area.
“As a result of the group’s diversified business model, strong portfolio of brands and successful track record, the Board remains confident of delivering continued profitable growth.”
He added: “2018 was a significant year for the Vimto brand, marking 110 years since my grandfather invented the drink that today is still enjoyed in the UK and around the world.”
Total sales in the UK business increased by 12.7% to £114.6m.
Sales of the Vimto brand grew by 12.9%, gaining market share and significantly outperforming the UK soft drinks category which grew at +7.8% (Nielsen MAT 29 December 2018).
Elsewhere in the UK, sales in the Out of Home channel increased by 15.2% compared to the prior year.
The strong performance was driven by sales of both dispensed soft drinks and frozen beverage products which reflects the significant investment in this part of our 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 our 2017 preliminary results statement, 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. The group’s total international sales were £27.4m.
In 2019 the firm expects the UK business to maintain its positive performance driven by the strength of the Vimto brand and the increasing opportunities in the out of home sector.
