Vimto maker takes exceptional costs hit but is confident on current forecasts
Nichols, the maker of the iconic Vimto soft drink, continued its momentum with improved revenues and strong expectations for the current financial year.
The Newton-le-Willows-based group said Vimto helped boost its performance, particularly in Africa and the Middle East.
Sales for the year to December 31, 2021 were £144.3m, up from £118.7m, a 21.6% increase.
However, the group recorded a pre-tax loss of £17.7m compared with a pre-tax profit of £6.5m in 2020. In 2019 the group made a pre-tax profit of £32.4m, prior to the disruption caused to trading by the coronavirus pandemic.
The group said it incurred exceptional costs of £39.5m during the year – up from £5.1m in 2020 – £38.9m of which is non-cash, linked to the impact of COVID-19, with many out of home outlets being closed for a prolonged period of time.
Nichols said that, while trading in the hospitality industry has begun to show growth and return to pre-COVID-19 levels, it is doing so at a slower pace than previously forecast and is only expected to fully return to pre-pandemic levels through 2022.
Adjusted operating profit of £21.9m was up from £11.7m a year ago.
A final dividend of 23.1 per share has been proposed, an 37.2% reduction on the previous year.
Non-executive chairman, John Nichols, who celebrates his 50th year with the group, said: “The continued strengthening of the Vimto brand, both in the UK and internationally, combined with the benefits of our diversified business model, has ensured another resilient financial performance in the period.
“We have achieved significant outperformance of the Vimto brand in dilutes in the UK, and we delivered solid growth internationally, particularly in Africa where we continue to grow, and critically delivered a robust performance in the Middle East.”
He added: “The group enters 2022 with excellent momentum and in a strong financial position. The group’s adjusted profit before tax expectations for the year FY22 (£25.2m) are unchanged, whilst we remain mindful of the well-publicised inflationary pressures which are now being realised.
“In the medium term for 2023 we expect continued revenue growth as well as inflationary and legislation cost pressure. We expect to see high single digit growth in group adjusted profit before tax versus FY22. The board believes the group is well positioned to deliver against its long term growth plans.”
