Nichols fizzing despite raw material concerns

10th Mar 2011 13:51

Fizzy drinks group Nichols is confident on 2011 prospects after an "outstanding" 2010, though rising raw materials prices did warrant a brief mention in the company's statement.The Vimto maker saw pre-tax profits jump to £14.8m from £11.9m in 2009 on revenues that rose to £41.7m from £36.2m. Nichols has also announced the purchase of the remaining 50% of drinks dispense group Dayla and has gained the license for the Levi Roots soft drink brand in the UK."2010 was another outstanding year, despite the difficult economic environment," said chairman John Nichols. "We made excellent progress and were well ahead of 2009, which was also a record year for us and therefore a tough target to beat."He said that while Nichols is not immune to raw material cost inflation, "tight control of costs, along with our significant international business, helps to mitigate the adverse impact."Last month, Britvic, the company behind Tango and Robinsons, which also distributes Pepsi in the UK and Ireland, increased its cost inflation guidance for 2011 to 9% to 11% from a previous estimate of 5% to 6%.