Soft drinks supplier Nichols saw a modest increase in top-line revenues in the three months to 31 March, driven by growth in its UK packaged business.
Revenues climbed 1.2% to £39.3m, as the group’s flagship Vimto brand saw “continued distribution gains and underlying volume increases” in the off-trade. UK packaged venues climbed 4.0% to £21.3m as a result.
Out of home, meanwhile, saw a 4.6% increase in revenues to £9.0m.
International packaged revenue reduced by 7.6% to £9.0m, in line with expectations, Nichols said. This was down to “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”, it noted.
The shift in operating model was partially responsible for a 16% jump in profits last year.
Nichols retained “a strong balance sheet” with net cash and cash equivalents at the end of the period totalling £60.0m, it said.
The London-listed supplier also sought to reassure investors over the potential impact of tariffs on its sales.
“The overall economic impact of recent volatility in global markets arising from tariff changes being implemented by the US government remains unclear,” it said. “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.”
Nichols’ outlook for FY25 remains unchanged, with revenues expected to hit £178.9m and profit before tax to be £33.1m.
“We are pleased to have delivered further strategic progress in Q1,” said Nichols CEO Andrew Milne. “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 Capital Markets Day.
“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.”
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