Vimto maker Nichols sees FY profits slightly ahead of market views

10th Jan 2024 08:08

(Sharecast News) - Vimto maker Nichols said on Wednesday that full-year adjusted pre-tax profit was set to be "slightly above" market expectations of £25.4m following a strong performance in 2023.

In an update for the year to the end of the December, the company said trading in the second half continued to progress well and in line with its growth strategy. In addition, the group has begun to realise some of the benefits from the restructuring of its Out of Home (OoH) business earlier than expected.

Total group revenue rose 3.5% during the year to £170.7m . Nichols said the packaged business continued to perform well, with sales up 6.1%, and particularly strong progress in the international segment, where export sales rose 16.8%.

As expected, revenue from the OoH business continued to fall as Nichols exited unprofitable accounts.

Nichols said that while inflationary pressures appear to be moderating in the UK, it remains aware of continued uncertainty affecting some of its markets but also confident that necessary mitigating actions are in place.

Chief executive Andrew Milne said: "Nichols has delivered a strong performance in FY23 making good progress against our strategic plans and achieving a PBT outcome ahead of market expectations.

"This is a great testament to the strength of the group's business model and brands, with our established UK position complemented by strong momentum internationally. Looking ahead into 2024 we remain focused on continuing to implement our strategic plans and delivering further progress against our long-term ambitions."