Following a profit warning from A.G. Barr yesterday, soft drinks rival Nichols has posted robust half year results, driven by strong sales of its Vimto brand.
Over the six months to 30 June, the company saw its total revenue increase by 10.2% to £71.6m, with pre-tax profits up 2% to £13.3m.
Revenue from its Still products increased by 11.6% to £33.9m, driven by Vimto dilute in the UK and Vimto concentrate sales to the Middle East. Meanwhile, sales of its Carbonate products grew by 8.4% to £37.7m as a result of good performance in Africa and Out of Home (OoH) growth.
In the UK, Nichols’ revenue rose by 6.2% to £57.1m, despite tough comparatives with last year when the drinks market benefitted from the summer heatwave. International revenues rose from £11.2m to £14.5m, with sales to the Middle East over doubling to £4.6m.
Non-executive Chairman John Nichols said: “The board is pleased with the group’s performance in the first six months of 2019 in both our UK and international markets.
“While UK trading conditions are expected to remain challenging, as a result of the group’s diversified business model and sales momentum, the board is confident that full year earnings will be delivered in line with its expectations.”
Alongside the results statement, Nichols announced that its Chief Financial Officer of 10 years, Tim Croston, will step down in June next year. The search for his successor has begun.
Meanwhile, the company’s Commercial Director, Andrew Milne, has been promoted to the role of Group Chief Operating Officer with immediate effect.
