Exports up as Vimto maker on course to beat market expectations
Nichols plc, the Newton-le-Willows headquartered soft drinks group has enjoyed a strong 2023 and expects pre-tax profits to exceed market expectations.
In a statement to the stock market this morning the company said they have begun to realise some of the benefits of restructuring the Out of Home (OoH) business earlier than initially anticipated.
Nichols sells soft drinks mixers to catering and hospitality businesses such as cinemas and theme parks, to play centres, pubs and restaurants.
Total revenue for the year increased by 3.5% to £170.7m (FY22: £164.9m), buoyed by overseas sales, where Vimto is particularly popular in the Arab countries. Export sales across the year were up by 16.8%3. In line with the Group’s expectations, revenue from our OoH business continued to reduce as we exited from unprofitable accounts.
Longer term Nichols intends to “accelerate the rate of investment in its longer-term development over the next 12 months”.
However, the statement cautioned that while inflationary pressures now appear to be moderating in the UK, the business remains “aware of continued uncertainty affecting some of our markets but remain confident that necessary mitigating actions are in place”.
Andrew Milne, chief executive officer of Nichols, commented: “Nichols has delivered a strong performance in FY23 making good progress against our strategic plans and achieving a PBT outcome ahead of market expectations. This is a great testament to the strength of the Group’s business model and brands, with our established UK position complemented by strong momentum internationally. Looking ahead into 2024 we remain focused on continuing to implement our strategic plans and delivering further progress against our long term ambitions.”
The Nichols family have selected Matthew Nichols to join the board as one of their allotted two non-executive directors.
He joined the Company in September 2006 and has held several senior roles within the Group. He currently holds the position of Commercial Director – International within the Group’s Packaged business and is a member of the Company’s Senior Leadership Team.
Liz McMeikan, Non-Executive Chair of Nichols, commented: “The Board is delighted to announce the appointment of Matt Nichols as a Non-Executive Director. Matt is a highly valued member of the Company’s senior leadership team, responsible for the leading the Company’s successful International business. He will bring a welcome diversity of perspective and I look forward to the value his contribution will bring to the work of the Board.”
Sahill Shan, analyst with Singer Capital Markets, said” Following a difficult few years, we firmly feel Nichols has turned the corner. It enters 2024 with good momentum, inflationary pressures moderating and a more simplified strategy to revive growth. In this context we feel there is good value at current levels.”
