Shareholders toast soft drinks group Nichols after £20m special dividend payout

Nichols shareholders will raise a glass of the Newton-le-Willows-based group’s famous Vimto drink to the company after a special dividend payout, worth around £20m, reflecting the strength of the group’s balance sheet and its progress..

Final results for the year to December 31, 2024, revealed a 1.2% increase in total revenues of £172.8m and a 0.9% fall in pre-tax profits of £24m. But shareholders will receive a total dividend of 32p per share, a 13.4% improvement, as well as a special one-off payment of 54.8p per share.

The group incurred £7.4m of exceptional items during the year, compared with £2.9m in 203, due to investments into its Business Change Programme and systems development.

Nichols reported sustained growth in its UK Packaged division achieving the highest ever Vimto Retail Sales Value of £121.2m, driven by new product innovation, increased marketing investment and distribution gains.

It expanded in the fourth quarter of the financial year to include Malaysia in its international reach.

The group said it anticipates a further strengthening of its performance during 2025.

Trading, to date, has been “positive” it said, and is in line with management expectations.

It also announced a couple of boardroom changes. It has appointed Alan Williams as an independent non-executive director with immediate effect, while John Gittins, current independent non-executive director and chair of the audit committee, will step down from the board this August, having served a full nine-year term, plus an additional year to support the group through senior leadership changes.

Alan will succeed John as chair of the audit committee and there will be a smooth transition of responsibilities.

Alan was most recently CFO of the building materials distributor, Travis Perkins. He spent 25 years in the FMCG sector, serving for six years as the CFO of Greencore Group and having undertaken a broad variety of roles in Cadbury, both in the UK and internationally and across both confectionery and beverages businesses.

He said: “This is an exciting time to join Nichols as it implements its growth strategy in line with its medium term ambitions set out at last year’s capital markets day. I look forward to working alongside the rest of the board and supporting the management team to deliver its strategic targets and to continue to generate attractive shareholder returns.”

Nichols CEO, Andrew Milne, said: “Nichols delivered another strong performance in 2024, delivering double digit PBT growth and improved gross margin as we continued to successfully execute our growth strategy across each of our routes to market.

“In the UK, Vimto reached its highest ever retail sales value, demonstrating the enduring appeal of our iconic brand, driven by expanded distribution, new product innovation and our biggest ever marketing campaign, ‘Love the Taste’.

“A strong performance in our international business was driven by volume growth in the Middle East during our 101st Ramadan in the region, as well as significant strategic progress across Africa as we transitioned to a margin-enhancing concentrate model in several markets.”

He added: “At our capital markets day in November, we outlined our medium term financial ambitions and a clear roadmap for growth.

“We operate in a resilient and growing category and are well positioned to capitalise on the significant opportunities across both our UK and international markets, leveraging the strength of the Vimto brand.

“Underpinned by our diversified business model, strong brand portfolio, and solid financial position, I remain confident in our ability to drive high margin, cash generative growth and deliver long term value for our shareholders.”