Vimto maker Nichols said today that it had delivered “another strong performance” in 2024, with it expecting full-year revenues and earnings to be in line with current market expectations.
In a brief trading update, the soft drinks supplier noted that trading in the second half of last year had continued the positive momentum from the first and was in line with its growth strategy and medium-term financial ambitions.
Group revenue rose by 0.8% to £172.1m as Nichols continued to perform well within its packaged business, which saw sales grow by 3.8%. This was driven by particularly solid trading in the UK, where sales rose by 5.4%, largely due to innovation and distribution gains.
However, in line with the company’s expectations, Out of Home (OoH) revenue fell by 8.2% following exits from unprofitable accounts as part of plans outlined in its 2022 strategic review.
Meanwhile, gross margins continued to improve as inflationary pressures eased during the year and as its overall product mix improved. Nichols noted that this stability has enabled increased investment in the long-term strategic development of the business.
Whilst inflationary pressures now appear to be moderating in the UK, Nichols stated that it “remains mindful” of continued uncertainty affecting some of its markets and necessary mitigating actions are in place.
Chief Executive Andrew Milne commented: “I’m pleased to report Nichols delivered a strong performance in FY24, with good progress made against our strategic plan and towards our medium-term financial ambitions.
“Our strategy will drive a high-margin, highly cash-generative, diversified business, built on the unique strength of the Vimto brand. Looking ahead, we remain focused on continuing to execute our strategic plans and driving further progress against our medium-term ambitions.”
