Sales and profits continue to grow for soft drinks group
Newton-le-Willows-based soft drinks maker Nichols reported improved revenues and profits for the year to December 31, 2019.
In a trading update to the stock exchange the firm, famous for its Vimto brand, said its performance is in line with market expectations.
The group, which issued a profit warning on December 23, after a tax on sugary drinks was announced in the Middle East, said revenues increased by 3.6% to £147.2m for the year, with all three areas of the business showing growth, which, it said, once again reflects the benefits of its strong diversified operating model.
UK sales totalled £117.7m, 2.7% ahead of the prior year.
Within the UK, Vimto brand sales grew by 0.8% against a very strong prior year comparative (12.9%) and in line with the overall soft drinks market (+0.7% Nielsen YTD 30 Nov 2019).
Elsewhere in the UK, Out of Home sales were £45.7m, an increase of 8.4% compared with the prior year.
This performance was driven by the acquisition of Adrian Mecklenburgh inFebruary 2019, and new sales of the ICEE frozen beverage brand in the second half of the year.
Revenue in international markets grew by 7.5% to £29.5m.
Sales to the Middle East were £11.6m, an increase of 20.6% in comparison with softer prior year comparatives.
Overall, the board said it is very pleased with the group sales performance and currently anticipate full year profit before tax to be in line with market expectations.
Group chairman, John Nichols, said: “We are pleased with the sales performance in 2019 reflecting growth across all three areas of our business. The Vimto brand has, again, performed very well in the UK, despite strong prior year comparatives.
“Underpinned by the group’s diversified business model, strong brands and successful track record, the board remains confident of Nichols Plc’s long-term progress.”
