Vimto maker Nichols has posted higher sales and profit figures for last year against a “challenging market and evolving regulatory environment”.
Over the 12 months to 31 December, the company delivered a 1.2% increase in revenue to £172.8m. Its core packaged business performed well, with revenue increasing by 4.4%. This was largely driven by strong performance within its UK division, where revenues increased by 6.3% on the back of product innovation, marketing and distribution gains.
Nichols’ international division saw revenues increase by only 0.8%, although the rate of growth was impacted by a shift to a lower revenue but margin enhancing concentrate model in a number of African markets.
Meanwhile, revenue in the group’s Out of Home (OoH) operation fell by 8.2% as it made further progress with its planned withdrawal from unprofitable accounts.
A continued focus on cost management resulted in the company’s adjusted operating profit increasing by 14.6% to £28.9m, with margin improving from 14.8% to 16.7%.
Looking ahead, Nichols said it expected continued “macroeconomic uncertainty”, but still anticipates that it will be able to further strengthen its performance across 2025. Trading to date is said to have been “positive” and in line with management expectations.
“At our Capital Markets Day in November, we outlined our medium-term financial ambitions and a clear roadmap for growth,” said Chief Executive Andrew Milne
“We operate in a resilient and growing category and are well positioned to capitalise on the significant opportunities across both our UK and international markets, leveraging the strength of the Vimto brand. Underpinned by our diversified business model, strong brand portfolio, and solid financial position, I remain confident in our ability to drive high-margin, cash-generative growth and deliver long-term value for our shareholders.”
NAM Implications:
- Proof that in uncertain markets…
- …getting down to basics…
- …cutting back on unprofitable elements…
- …and finding growth amidst the uncertainty…
- …can pay off.
