Nichols returns to profit as revenues jump

1st Mar 2023 07:07

(Sharecast News) - Nichols swung back into the black last year, the soft drinks specialist said on Wednesday, despite mounting inflationary pressures.

Revenues for the year to 31 December were £164.9m, a 14% improvement on 2021. Within that, the owner of Vimto, Feel Good and Sunkist, among others, said UK revenues had strengthened 14% to £127m and international sales had increased 16% at £38m.

Adjusted pre-tax profits rose nearly 15% to £25m, while pre-tax profits were £13.8m, compared to a pre-tax loss of £17.7m a year previously, when Nichols took an exceptional charge against its out-of-home business.

John Nichols, chair, said: "Vimto continues to perform well both in the UK and internationally. Despite ongoing inflationary pressures, which accelerated during the second half, the brand ensured a robust financial performance for the group.

"With a long-term track record of growth, a proven and diversified strategy in the UK and internationally, a quality range of brands and a strong balance sheet, the board remains highly confident that the group is well-positioned to deliver on its long-term growth plans."

Looking to the current year, the AIM-listed firm acknowledged it would likely be "challenging", with the cost of living hitting consumer demand. Adjusted pre-tax profits are forecast to be in line with both 2022 and market expectations.

It expects to make "significant progress" in 2024, however, as inflationary pressures ease.

As at 0900 GMT, shares in Nichols were ahead 4% at 1,036.85p.