Nichols, the producer of Vimto soft drinks, has reported a 14.3% rise in full-year revenue, to £164.9 million (€185.9 million), up from £144.3 million (€162.7 million) the previous year.
The revenue increase was mainly driven by a 20.4% increase in sales of carbonated products, which reached £86.6 million (€97.6 million) compared to £71.9 million (€81 million) in 2021. Elsewhere, still product sales grew by 8.2%, reaching £78.3 million (€88.3 million).
UK Market
The UK market saw a revenue increase of 13.7%, driven by a 2.9% rise in packaged route to market sales and a 42.8% increase in out-of-home sales as the country continued to recover from the pandemic.
International revenues also saw growth, increasing by 16.1%, with the Middle East recording 20.4% growth in revenue.
The company also reported a strong cash performance, with free cash flow of £14.6 million (€16.46 million) and a cash conversion of 72%.
In terms of strategic and operational highlights, the brand value of Vimto increased by 3.0% in the UK, Nichols said, while the dilutes market outperformed by 2.3%.
The company also said that it made 'significant progress' in the ready-to-drink market, with brand value increasing by 15.9%.
Nichols has completed a strategic review of the out-of-home route to market, identifying 'opportunities for net margin improvement', and said that it will continue to implement actions throughout the coming year.
'Robust' Performance
“Vimto continues to perform well both in the UK and internationally and despite ongoing inflationary pressures, which accelerated during the second half, the brand has ensured a robust financial performance for the group," commented John Nichols, non-executive chairman
"In the UK we have again seen the brand outperform in dilutes and continued to make significant progress in the ready to drink subcategory. Internationally, we continued to see solid growth across all regions. In particular, it was pleasing to see strong underlying growth in both the Middle East and Africa given the importance of these markets to the Group."
Nichols added that the company's board remains "highly confident" that it can deliver on its long-term growth plans.
© 2023 European Supermarket Magazine – your source for the latest A-Brands news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
