Soft drinks firm Nichols has reported a strong full-year 2024 performance as trading in the second half of the year continued the positive momentum from the first half.
The Vimto maker added that it expects to report FY 2024 revenue and adjusted profit before tax in line with current market expectations.
Andrew Milne, chief executive officer of Nichols, commented, "I’m pleased to report Nichols delivered a strong performance in FY24, with good progress made against our strategic plan and towards our medium-term financial ambitions.
"Our strategy will drive a high-margin, highly cash-generative, diversified business, built on the unique strength of the Vimto brand. Looking ahead, we remain focused on continuing to execute our strategic plans and driving further progress against our medium-term ambitions."
Annual Highlights
Group revenue at Nichols increased by 0.8%, to £172.1 million (€204.04 million), driven by good performance in its packaged division.
Full-year sales at the unit increased 3.8%, driven by robust growth in the UK where sales rose by 5.4% due to innovation and distribution gains.
The company's international business delivered a strong second half, with full-year revenues remaining in line with the prior year despite the shift to a lower revenue but margin-enhancing concentrate model across several African markets.
Revenue in the out-of-home segment reduced by 8.2% following exits from unprofitable accounts.
Gross margin for the financial year continued to improve as inflationary pressures eased and the overall product mix improved.
This stability has enabled increased investment in the long-term strategic development of the group, Nichols added.
Outlook
Nichols will continue with its strategy of investing in extending its product range and the development of its international markets. Both are expected to continue to provide growth over the medium term.
The board remains cautious of uncertainty affecting some of the group’s markets despite inflationary pressures appearing to be moderating in the UK.
The company added that it is well-positioned to deliver its strategic plans and medium-term financial ambitions that will continue to generate sustainable shareholder returns.
Analysts at Singer Capital Market noted, 'Nichols has attractive growth in existing markets and a clear margin improvement opportunity. We see International as particularly exciting.
'Per the financial targets set out at the Nov'24 CMD, this gives a line of sight to 50% PBT growth to £45 million (€53.4 million) in the mid-term and EPS of 92.5p (8.5% 5-year CAGR).'
