Vimto brand owner Nichols has reported a 10% increase in full-year profit before tax.
The company, which also sells Levi Roots soft drinks, Sunkist and Panda, said profits rose to £22.5m in 2013.
During the year, the group reduced its promotional participation in the carbonates segment in an effort to bolster its margins.
The new strategy helped Nichols increase its operating margin from 19% to 20%.
However, it had a negative knock-on effect on UK carbonates sales, which were down 6% on last year.
Total UK sales climbed 2% to £86.8m during the year, with sales growth accelerating in the second half of the year. Sales were boosted by new launches including a zero-sugar carbonated coconut and lime from Levi Roots and its first energy drink under the Extreme brand.
International sales also climbed 2% to £23.1m boosted by strong growth in Africa.
Nichols said it was confident it could maintain a strong performance in 2014 despite a challenging retail environment.
“We will continue to invest in our brands and grow distribution in both our UK and international markets,” said Nichols chairman John Nichols.
In January, the group entered the water enhancer category with Vimto Squeezy and it is soon to embark on a new TV campaign.
Analysts gave a positive appraisal of Nichols’ prospects. N+1 Singer analyst Sahill Shan said: “The challenge in 2014 is to lift UK sales growth having rebased gross margins in 2013 and to further build on an improving international platform. On both counts there is positive evidence in the finals.”
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