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Vimto brand underpins 2020 performance for Nichols
12th Jan 2021 15:43
(Sharecast News) - Soft drinks company Nichols updated the market on its trading for 2020 on Tuesday, reporting that during the year, its Vimto brand achieved "strong growth" in the UK, while its International business performed well.
The AIM-traded firm did say, however, that its progress was offset by declines in iits UK out-of-home route to market, as a result of the coronavirus pandemic.
In line with its expectations, total group revenue in the period decreased 19.3% to £118.7m compared to the prior year.
The group said it was expecting to report adjusted profit before tax for 2020 in line with its previous guidance.
As it had expected, Nichols said trading in the fourth quarter remained "very challenging" in the out-of-home route to market.
Fourth quarter out-of-home revenues were 84% lower than in the same period of 2019, as large areas of the UK entered tier 3 and 4 restrictions, resulting in the closure of outlets.
Cash generation remained "strong" through 2020, the board noted, adding that despite the financial challenges posed by the ongoing pandemic, cash and cash equivalents at the end of the year totalled £47.3m, compared to £40.9m at the end of 2019.
"Whilst recognising the current and near-term impact of the pandemic on the soft drinks market, the Board continues to believe that Nichols, underpinned by the strength of the Vimto brand, the group's diversified business model and the robust balance sheet, remains well placed to deliver its long-term strategic ambitions," the Nichols board said in its statement.
Nichols said it would publish its 2020 preliminary results on 3 March.
At 1517 GMT, shares in Nichols were down 2.04% at 1,200p.
The AIM-traded firm did say, however, that its progress was offset by declines in iits UK out-of-home route to market, as a result of the coronavirus pandemic.
In line with its expectations, total group revenue in the period decreased 19.3% to £118.7m compared to the prior year.
The group said it was expecting to report adjusted profit before tax for 2020 in line with its previous guidance.
As it had expected, Nichols said trading in the fourth quarter remained "very challenging" in the out-of-home route to market.
Fourth quarter out-of-home revenues were 84% lower than in the same period of 2019, as large areas of the UK entered tier 3 and 4 restrictions, resulting in the closure of outlets.
Cash generation remained "strong" through 2020, the board noted, adding that despite the financial challenges posed by the ongoing pandemic, cash and cash equivalents at the end of the year totalled £47.3m, compared to £40.9m at the end of 2019.
"Whilst recognising the current and near-term impact of the pandemic on the soft drinks market, the Board continues to believe that Nichols, underpinned by the strength of the Vimto brand, the group's diversified business model and the robust balance sheet, remains well placed to deliver its long-term strategic ambitions," the Nichols board said in its statement.
Nichols said it would publish its 2020 preliminary results on 3 March.
At 1517 GMT, shares in Nichols were down 2.04% at 1,200p.