Vimto maker Nichols saw its group revenue increase by 4.2% to £41.2m during the first three months of this year, although it admitted that the cost of living crisis is impacting its out-of-home (OOH) business.
In a brief AGM trading update, the group said its overall positive performance reflected progress in its Packaged business, which saw revenues increase by 7.7% to £32.0m. This was principally driven by an accelerated performance in the International Packaged route to market, where revenue grew by 20.1% as good momentum in Africa continued from the previous year.
Within the UK Packaged route to market, Nichols saw revenue marginally ahead of the prior year as the business continued to progress its “value over volume” strategy.
Meanwhile, its OOH business experienced a slower start to 2023 than in the prior year, with revenues down 7.8% to £9.2m, as cash-strapped shoppers made cutbacks.
Looking ahead, the group said it continues to take actions to mitigate “significant” inflationary pressures, with its profit expectations remaining unchanged.
