In a pre-AGM statement, Vimto maker Nichols said its trading in 2024 had been in line with its expectations.
Growth in its UK Packaged business was offset by an anticipated decline in International revenue due to the phasing of shipments and strong prior year comparatives as well as a continued rationalisation and focus on profitability in its Out of Home (OoH) business. As a result, group revenue decreased 5.9% to £38.8m over the three months to 31 March.
UK Packaged revenues increased by 6.8% to £20.4m, driven by an underlying volume increase of 4.4%. Its Vimto brand was said to have continued to grow in value, largely reflecting new product innovation and increased distribution.
International Packaged revenues decreased by 23.0% to £9.8m, reflecting the timing of shipments into the Middle East and reduced volumes in Africa, which benefited from one-off launch volumes into Ivory Coast during the same period last year. Nichols stated that it continues to expect the International business to deliver profitable growth across the full year.
In line with the group’s strategic plan, OoH revenues declined by 6.2% to £8.6m, reflecting the withdrawal from unprofitable accounts in the second half of last year. Nichols noted the OoH business continued to show improved profitability as the benefits of the strategic review were realised.
Looking ahead, the company said: “The Board remains confident that the Group, underpinned by the strength of the Vimto brand and the Group’s diversified international business model, is well placed to deliver profitable growth in the coming year and achieve its long-term strategic ambitions. The Group’s Adjusted PBT1 expectations for FY242 remain unchanged.”
NAM Implications:
- The perils of export…
- …but a useful source of revenue in terms of balancing the global business in the long term.
