Soft drinks manufacturer Nichols has continued its bounce back from the effects of the pandemic, with a 19.1% jump in revenue to £80.2m and 24.2% increase in operating profit to £11.2m over the six months to 30 June.
The group’s UK division grew 29.3% to £62.6m, with its core Vimto brand continuing to outperform the dilutes market by 9.1%.
Volumes in the packaged route to market were flat, although this was better than the wider soft drinks market, which was down 4.3% as consumer spending slows.
The group’s out of Home (OoH) business in the UK continued to recover from the pandemic, with revenues surging up 131.9%.
Meanwhile, international revenues slipped 7.2% to £17.6m, due mainly to supply chain disruption in the first quarter with recovery now underway.
Nichols said its 2022 profit expectations remained unchanged, despite “significant and accelerating” inflationary pressures, particularly in ingredient and packaging costs. It stated that customer, supplier and operational mitigation actions were underway.
“The Board remains mindful of the potential earnings impact of continued inflation into FY23 and beyond,” said non-executive chairman John Nichols.
“We have a long-term track record of growth, a proven, diversified strategy, and a quality range of brands. All of this is underpinned by a strong balance sheet. As a result, the Board remains confident that the group is well positioned to deliver its long-term growth plans.”
