Profits up as Vimto celebrates its 100th birthday
NORTH West drinks maker Nichols today raised a glass to a healthy profit as its iconic Vimto brand celebrates its 100th birthday.
The Newton-le-Willows firm said that despite the recession and increased promotion by its competitors, pre-tax profit before exceptional items for the 12 months to December 31 rose 11% to £10m on turnover up 1.6% to £56.2m.
However the group was hit with a one-off charge of £5.9m mainly from goodwill impairment on its Panda brand.
Sales of Vimto, which was invented in Manchester as a health tonic in 1909, grew 16% in the UK. Internationally, more than 370 million of litres of Vimto are consumed a year, and sales in the group’s core Middle Eastern market were boosted by a new TV advertising campaign.
However, sales of the fizzy Panda brand suffered from the decline of the ‘kids carbonate’ market. Overall, profits in its soft drinks operation were up by 15.7% to £9.6m.
The dispense business, which includes the Cabana and the recently purchased Dayla brands, saw profit rise 18% to £910,000.
Chairman John Nichols said: “We are pleased to announce a strong set of results in Vimto’s centenary year, particularly as this has been achieved against the backdrop of an economic downturn, a poor summer in the UK and increased promotional activity by our competitors.
“The results show we have a robust, focused, profitable and cash generative business, which is well placed to respond to the challenges presented by the current economic climate. We continue to invest for growth in our core Vimto brand in the UK and overseas and feel we are in the best possible shape to face the future.”
Nichols proposed final dividend of 7.4p per share up from 6.9p last time, bringing the total to 11.5p.
