REG - Nichols PLC - FY24 Trading Update

NicholsAnnouncement

15/01/2025 07:00

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RNS Number : 3292T  Nichols PLC  15 January 2025

 

15 January 2025

(the "Company" or the "Group")

FY24 Trading Update

Nichols plc, the diversified soft drinks Group, is pleased to provide the
following Trading Update for the 12 months to 31 December 2024 ("FY24").

Trading Update

The Group delivered another strong performance in 2024 and expects to report
FY24 Revenue and Adjusted Profit Before Tax(1) ("Adjusted PBT") in line with
current market expectations(2). Trading in the second half of the year has
continued the positive momentum from the first half and is in line with the
Company's growth strategy and medium-term financial ambitions outlined at our
Capital Markets Day in November 2024.

Group revenue increased by 0.8% to £172.1m(3) during the year
(FY23: £170.7m). We continued to perform well within our Packaged business,
with full year sales up by 3.8%(3), driven by particularly strong growth in
the UK where sales rose by 5.4% largely driven by innovation and distribution
gains. The International business performed very strongly in the second half,
as anticipated, with full year revenues remaining in line with the prior year,
despite the shift to a lower revenue but margin enhancing concentrate model
across several African markets. In line with the Group's expectations, Out of
Home (OoH) revenue reduced by 8.2%(3) following exits from unprofitable
accounts as part of the actions following the 2022 strategic review.

Gross margins have continued to improve as inflationary pressures eased during
the year and as the overall product mix improved. This stability has enabled
increased investment in the long-term strategic development of the Group.

Cash generation has remained strong throughout the year and the Group
benefitted from increased interest receipts during the year. At 31 December
2024, cash and cash equivalents were £53.7m(3) (FY23: £67.0m) after the
payment of a special dividend of £20m during the year.

Outlook

The Group continues to derive considerable benefit from its diversified
business model, with an established UK position complemented by the
significant growth opportunities within the International business. Within the
Packaged business, the Group continues its strategy of investing in extending
the product range and in the development of its international markets, both of
which are expected to continue to provide growth over the medium-term.

Whilst inflationary pressures now appear to be moderating in the UK, the
Board remains mindful of continued uncertainty affecting some of the Group's
markets and necessary mitigating actions are in place. Underpinned by the
strength of its diversified business model and robust financial position, the
Group remains confident that Nichols is well positioned to deliver its
strategic plans and medium-term financial ambitions that will continue to
generate sustainable shareholder returns.

Andrew Milne, Chief Executive Officer of Nichols, commented:

"I'm pleased to report Nichols delivered a strong performance in FY24, with
good progress made against our strategic plan and towards our medium-term
financial ambitions.

Our strategy will drive a high-margin, highly cash-generative, diversified
business, built on the unique strength of the Vimto brand. Looking ahead, we
remain focused on continuing to execute our strategic plans and driving
further progress against our medium-term ambitions."

 

 

(1) Before exceptional items

(2) FY24 consensus is management's aggregated view of analyst forecasts
(Revenue £172.7m and Adjusted PBT £30.1m)

(3) Unaudited

 

Contacts

 Nichols plc                                       Telephone: 0192 522 2222

 Andrew Milne, Chief Executive Officer

 Richard Newman, Chief Financial Officer

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

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

 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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