Soft drinks maker Nichols has revealed that its revenue in the three months to 31st March increased by 1.2% to £39.3m, in line with its expectations.
UK packaged revenues increased by 4.0% to £21.3m, driven by distribution gains and underlying volume increases for its core Vimto brand.
However, international packaged revenue reduced by 7.6% to £9.0m. This was blamed on the phasing of shipments to the Middle East due to the timing of Ramadan, as well as a strategic shift towards the higher margin concentrate sales model in West Africa, as outlined by the company last year. “The Board remains confident of making continued strategic progress and delivering further profitable growth in the International business for the full year,” it added.
Out of Home (OoH) revenues rose by 4.6% to £9.0m, with the performance benefiting from the increased focus on targeted business development and profitable growth following the OoH strategic review, which Nichols completed in 2023.
The group noted that its revenue and adjusted profit expectations for the full year were unchanged. “The overall economic impact of recent volatility in global markets arising from tariff changes being implemented by the US Government remains unclear,” the AGM trading statement said.
“We have reviewed the potential implications and our initial assessment is that given the Group’s diverse geographic revenues, our direct exposure to the most affected markets is limited, representing less than 2% of Group revenue. Furthermore, we expect to benefit from medium-term contractual security in relation to potential cost inflation. We will continue to review our position and manage our approach to business accordingly.”
The company concluded that it was well-positioned to deliver continued profitable growth and make further progress towards its medium-term financial and strategic ambitions.
