Surge in profits and sales for Vimto maker Nichols
North West soft drinks icon Nichols PLC told the stock market this morning it had made strong growth across its packaged business lines from continued investment in brands, including product range extension and geographical expansion.
The Newton-le-Willows headquartered company said continued progress in international markets reflected a strong market penetration across existing and new territories in Africa and the Middle East and was ready to celebrated its 100th Ramadan season during 2023 with “outstanding in-store displays that generated increased consumer engagement and purchases.” The Middle East delivered revenue growth of 10.3%.
In Africa Nichols delivered revenue growth of 17.6% which builds on the 15.0% growth achieved in 2022, re-opening in Gambia, launching a new watermelon range in Senegal and across the Sudan region capitalising on “strong consumer demand” for pomegranate flavours through launching a new cordial range.
The company has also developed a new partnership with a local distributor in the Ivory Coast.
Andrew Milne, Chief Executive said: “Across our Rest of World markets we delivered double digit revenue growth of 26.5%, building on the strong performance delivered in Europe in 2022. This success was achieved by driving additional distribution points for our core ranges across key retailers and wholesalers. Our partners focused heavily on implementing key marketing programmes, targeted at improving brand visibility and availability to deliver increased penetration and market share.”
Top line revenue was up 3.5% at £170.7m (2022: £164.9m) with overall packaged business revenue increased by +6.1%. The company made profit before tax of £24.3m.
Milne added: “2023 was a year of strong progress and execution for Nichols, as the Packaged business delivered another year of growth underpinned by the Vimto brand, and benefits from the newly streamlined OoH business were delivered earlier than anticipated. The Group delivered a very strong performance in international markets driven by strong market penetration across existing and new territories in Africa and the Middle East. Innovation remained a critical growth driver and we have an exciting pipeline of new products planned for 2024.
“Building on the progress achieved in 2023, I am confident about our prospects for 2024 and the well-defined strategy we have in place to drive further growth. Our diversified business model provides the foundation for continued success, reinforced by our well-established portfolio of owned and licensed brands, the close partnerships we have with our suppliers and customers and our long-term strategic focus. These strengths, coupled with a resilient soft drinks market and the dedication of our people, will enable us to continue to deliver value to shareholders.”
