REG - Nichols PLC - AGM Trading Update

NicholsAnnouncement

23/04/2025 07:00

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RNS Number : 7488F  Nichols PLC  23 April 2025

23 April 2025

(the "Company" or Group")

AGM Trading Update

Trading and FY outlook in line with expectations with the Group well placed to
make further progress towards its medium-term ambitions

Nichols plc, the diversified soft drinks Group, provides the following trading
update for the three months to 31(st) March 2025 ("the Period"), to coincide
with the Company's Annual General Meeting ("AGM") taking place later today.

Group revenue in the Period increased by 1.2% year-on-year to £39.3m (2024:
£38.8m), in line with the Board's expectations.

UK Packaged revenues increased by 4.0% to £21.3m (2024: £20.4m) driven by
continued distribution gains and underlying volume increases for the Vimto
brand.

As anticipated, International Packaged revenue reduced by 7.6% to £9.0m
(2024: £9.8m). This reflects the phasing of shipments to the Middle East due
to the timing of Ramadan as well as the strategic shift towards the higher
margin concentrate sales model in West Africa, as outlined at the Group's
Capital Markets Day last year. The Board remains confident of making continued
strategic progress and delivering further profitable growth in the
International business for the full year.

Out of Home (OoH) increased revenues by 4.6% to £9.0m (2024: £8.6m) with the
performance benefiting from the increased focus on targeted business
development and profitable growth following the OoH strategic review, which
completed in 2023.

The Group retains a strong balance sheet with net cash and cash equivalents at
the end of the Period of £60.0m (31 December 2024: £53.7m).

Outlook

The Group's revenue and adjusted PBT(1) expectations for FY25(2) are
unchanged.

The overall economic impact of recent volatility in global markets arising
from tariff changes being implemented by the US Government remains unclear. We
have reviewed the potential implications and our initial assessment is that
given the Group's diverse geographic revenues, our direct exposure to the most
affected markets is limited, representing less than 2% of Group revenue.
Furthermore, we expect to benefit from medium-term contractual security in
relation to potential cost inflation. We will continue to review our position
and manage our approach to business accordingly.

Underpinned by the strength of the Vimto brand, Nichols' diversified business
model and clear growth strategy, the Group is well positioned to deliver
continued profitable growth and make further progress towards its medium-term
financial and strategic ambitions.

Andrew Milne, Chief Executive Officer of Nichols, commented:

"We are pleased to have delivered further strategic progress in Q1.

Our UK Packaged business delivered continued growth as a result of increased
volumes and distribution gains, reflecting progress against the strategic
priorities outlined at our 2024 CMD.

In the International business, we are making good progress with the shift
towards a higher margin concentrate model in several of our West African
markets. Whilst the move away from shipping finished product impacts revenue,
the concentrate model delivers a step change in margins and positions us well
to achieve long-term, profitable growth in these markets.

We continue to expect further growth in FY25 in line with market expectations
as we continue to execute our strategy and make progress towards our
medium-term financial and strategic ambitions."

 

(1) Excluding exceptional items

(2) FY25 expectations refer to a Group compiled market consensus of revenue
and adjusted PBT of £178.9m and £33.1m respectively

 

Contacts

 Nichols plc                                        Telephone: 0192 522 2222

 Andrew Milne, Chief Executive Officer

 David Taylor, Interim Finance Director

 Singer Capital Markets (NOMAD & Joint Broker)      Telephone: 0207 496 3000

 Jen Boorer / Oliver Platts                         Website: www.singercm.com (http://www.singercm.com/)

 Berenberg (Joint Broker)                           Telephone: 0203 207 7800

 Clayton Bush / Alix Mecklenburg-Solodkoff          Website: www.berenberg.de (http://www.berenberg.de)

 Hudson Sandler (Financial PR)                      Telephone: 0207 796 4133

 Alex Brennan / Hattie Dreyfus / Harry Griffiths    Email: nichols@hudsonsandler.com (mailto:nichols@hudsonsandler.com)

 

 Notes to Editors

 Established in 1908, Nichols operates within the resilient soft drinks
 category and owns or licenses several brands. Nichols is geographically and
 operationally diversified, operating across three routes to market of UK
 Packaged, International Packaged and Out of Home.

 In the UK, Nichols operates across five soft drinks sub-categories: squash,
 flavoured carbonates, fruit drinks, energy and flavoured water. Nichols'
 portfolio includes the iconic Vimto brand plus a growing portfolio of licensed
 brands including Levi Roots, ICEE, SLUSH PUPPiE and Sunkist.

 Under its asset-light model, Vimto is prominent in areas such as the Middle
 East and Africa and is enjoyed in over 60 countries worldwide.

 For more information, visit the website: https://www.nicholsplc.co.uk/
 (https://www.nicholsplc.co.uk/)

 

 Notes to Editors

 Established in 1908, Nichols operates within the resilient soft drinks
 category and owns or licenses several brands. Nichols is geographically and
 operationally diversified, operating across three routes to market of UK
 Packaged, International Packaged and Out of Home.

 In the UK, Nichols operates across five soft drinks sub-categories: squash,
 flavoured carbonates, fruit drinks, energy and flavoured water. Nichols'
 portfolio includes the iconic Vimto brand plus a growing portfolio of licensed
 brands including Levi Roots, ICEE, SLUSH PUPPiE and Sunkist.

 Under its asset-light model, Vimto is prominent in areas such as the Middle
 East and Africa and is enjoyed in over 60 countries worldwide.

 For more information, visit the website: https://www.nicholsplc.co.uk/
 (https://www.nicholsplc.co.uk/)

 

Notes to Editors

Established in 1908, Nichols operates within the resilient soft drinks
category and owns or licenses several brands. Nichols is geographically and
operationally diversified, operating across three routes to market of UK
Packaged, International Packaged and Out of Home.

In the UK, Nichols operates across five soft drinks sub-categories: squash,
flavoured carbonates, fruit drinks, energy and flavoured water. Nichols'
portfolio includes the iconic Vimto brand plus a growing portfolio of licensed
brands including Levi Roots, ICEE, SLUSH PUPPiE and Sunkist.

Under its asset-light model, Vimto is prominent in areas such as the Middle
East and Africa and is enjoyed in over 60 countries worldwide.

For more information, visit the website: https://www.nicholsplc.co.uk/
(https://www.nicholsplc.co.uk/)

 

 

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