Nichols, the soft drinks maker hit hard by the slump in out-of-home (OoH) consumption during the pandemic, has made a better start to 2021 and is upbeat about its future prospects.
The company, best known for its Vimto brand, saw its revenues slide 19.3% last year. However, in a pre-AGM trading update for the quarter to 31 March, Nichols revealed that its revenue had fallen by only 5.9% to £30.7m, despite the impact of the UK lockdown.
The group stated that strong growth achieved by its Vimto brand in the UK and a solid start for its International business had largely offset a 91.9% year-on-year decline in revenues in the OoH route to market.
The Vimto brand achieved growth of 4.9% in value terms versus 3.2% across the wider UK soft drinks market.
The company highlighted that despite the financial challenges posed by the pandemic, cash and cash equivalents remained strong at £43.1m.
Looking forward, Nichols said it was “well placed” to deliver its long-term strategic ambitions.
It added: “Should the UK government’s planned roadmap out of lockdown continue, and assuming the absence of further lockdowns later in the year, the board expects full-year adjusted profit before tax to be broadly in line with current market expectations.”
The group’s shares price was up over 1% in early trading.
