Vimto maker Nichols hailed its robust performance after delivering strong top-line sales and profit growth during its first half, putting it on track to meet full-year expectations.
Over the six months to 30 June, the soft drink firm’s pre-tax profit increased 10.5% to £11.2m on revenue up 6.6% to £85.5m.
Packaged revenues increased 10.4% to £64.5m, boosted by its International business, which grew 24.6% to £21.5m. UK packaged revenues rose 4.5% to £43.1m, with Nichols noting its ongoing focus on value over volume.
Out of Home (OOH) revenues slipped 3.5% to £21.0m, which the group stated reflected a planned reduction in activity post a review of the channel.
Gross margin fell slightly from 42.8% to 41.1%, although Nichols noted that cost of goods inflation had been recovered through price and mitigating actions.
Chief Executive, Andrew Milne, commented: “We are pleased with our encouraging first-half performance, which again reflects the strength of the Vimto brand. Particularly pleasing is the growth in our core Packaged business, and the continued accelerated momentum across our international markets with very strong performances in Africa, the Middle East and the rest of the world.
“The group achieved significant strategic progress during the period, particularly in relation to our Out of Home business, where we are making positive changes to simplify operations and focus on the areas of greatest opportunity and profitability. We are on-track to deliver the material benefits of these changes from FY 2024. Meanwhile, we remain focused on accelerating growth in Packaged, both in the UK and internationally, in line with our strategic plan.”
While mindful of the ongoing impact of inflationary pressures on consumer spending, Milne stated that the company expects adjusted pre-tax profit for its full year to be in line with market expectations of £25.2m.
