Nichols sees interim profits fizz thanks to strong Vimto performance
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Newton-le-Willows soft drinks group Nichols toasted strong interim results today, with an impressive increase in pre-tax profits.
The maker of iconic drink Vimto saw turnover rise by 13.8% to £67.4m in the six months to June 30, 2021, while pre-tax profits fizzed by 193.4% to £8.9m.
Cash and cash equivalents remained static at £47.4m, and the interim dividend has been increased by 65% to 9.8p per share.
The Vimto brand value in the UK rose 2.7% on yeat to date, with Vimto Dilutes significantly outperforming the market.
UK revenues were up by 5.5% with Out of Home revenues broadly in line with the prior year following an encouraging second quarter performance.
Vimto international growth came in at 42.3% versus the prior year. Vimto ‘in market’ Middle East volumes remained resilient through Ramadan with full year ‘in market’ volumes expected to remain in line with pre-Sweetened Beverage Tax levels. Vimto in Africa delivered strong revenue growth of 22.8%. The group said Vimto continues to progress across the rest of the world, delivering revenue growth of 49.3%.
The business continues to invest in UK operational change to ensure continued agility and growth given future prospects
The group also said new long term agreement have been signed with J & J Snack Foods Corp to manufacture, manage, distribute and sell the SLUSH PUPPiE brand across the UK, Ireland and Europe.
Non-executive chairman, John Nichols, said: “Our first and most important objective through the COVID-19 pandemic has been the continued safety and wellbeing of our employees and customers.
“Throughout these challenging times our colleagues have consistently demonstrated their commitment to our business and our customers, and I would again like to wholeheartedly thank everyone for their support.
“The continued strong performance of the Vimto brand, the group’s robust balance sheet and our diversified business model has ensured a resilient financial performance in the period with growth across each of our reporting segments.
“The UK Government’s planned roadmap out of lockdown continues and although at a more cautious pace than originally planned, the group’s positive start to the year means that we remain confident that it will achieve the board’s expectations for the year.
“Longer term, the board is currently assessing the impact of inflationary pressures affecting logistics, labour, plastics and costs associated with increasing environmental legislation.”