REG - Nichols PLC - Trading Update

NicholsAnnouncement

11/01/2023 07:00

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RNS Number : 3099M  Nichols PLC  11 January 2023

11 January
2023
 

Nichols plc

(the "Company" or "Group')

Trading Update

Nichols plc, the diversified soft drinks Group, provides the following trading
update for the 12 months to 31 December 2022 ("the Period").

Total Group revenue during the year increased by +14%(1) to £164.9m(1), with
second half performance up +10%(1) year-on-year.

The Vimto brand continued to perform well, with its brand value increasing by
+3.4% in the UK, according to Nielsen(2) as at 3 December 2022. This is
broadly in line with the performance of the Group's UK packaged route to
market.

In the International packaged route to market, the Vimto brand continued to
see strong progress year-on-year, with revenue growth +15%(1) versus the prior
year. Second half performance was +48%(1) up year-on-year, with positive
performance in all regions.

The Group's Out of Home ("OoH") route to market continues to recover from the
impact of the pandemic and has seen revenue growth of +43%(1) year-on-year. H2
growth slowed to +5%(1), reflecting a more normalised trading environment in
the prior year comparative period, as well as the widely publicised cost of
living pressures. The outcome of the Group's OoH Strategic Review will be
announced with the Preliminary Results in March 2023, where significant
opportunities for net margin improvement have been identified. Actions are
expected to be implemented throughout FY23, with benefits being realised from
FY24.

Despite ongoing inflationary pressures, which accelerated during the second
half, the Group expects to report FY22 Adjusted Profit Before Tax ("Adjusted
PBT")(3) in line with market expectations.

Cash generation remained strong throughout 2022, and cash and cash equivalents
at the end of the year stood at £56.3m(1) (31 December 2021: £56.7m).

Chair succession

Nichols plc also today announces the appointment of Elizabeth McMeikan as its
next Non-Executive Chair. More information on Elizabeth's appointment can be
found in the separate announcement issued to the London Stock Exchange today.

Outlook

The Group has a proven, diversified, and international business model.
However, it is not immune to the significant and accelerating inflationary
pressures impacting the wider consumer and soft drinks markets. Whilst FY23
will be a challenging year as cost of living pressures impact consumer demand
across all routes to market, the Group will continue to seek to mitigate these
pressures through both cost efficiency and revenue management. Throughout
FY22, this has helped the Vimto brand continue to grow in the UK and
Internationally, which the Board is confident will continue in FY23.

The Board currently expects FY23 Adjusted PBT to be broadly in line with FY22
but remains confident of significant progress in FY24 as inflationary
pressures abate and the benefits of the OoH Strategic Review are realised.

With a long-term track record of growth, a proven and diversified strategy, a
quality range of brands and a strong balance sheet, the Board remains highly
confident that the Group is very well positioned to deliver its long-term
growth plans.

The Group intends to announce its 2022 Preliminary Results on 1 March 2023.

1 Unaudited

2 Source: Nielsen IQ RMS data for the Total Soft Drinks category for the YTD
ending 3 December 2022 for the GB Total Coverage market

3 Excluding Exceptional items

Contacts

 

 Nichols plc                                       Telephone: 0192 522 2222

 Andrew Milne, Group Chief Executive Officer

 David Rattigan, Group Chief Financial Officer
 Singer Capital Markets (NOMAD & Broker)           Telephone: 0207 496 3000

 Steve Pearce / Jen Boorer                         Website: www.singercm.com (http://www.singercm.com)
 Hudson Sandler (Financial PR)                     Telephone: 0207 796 4133

 Alex Brennan / Charlotte Cobb / Harry Griffiths   Email: nichols@hudsonsandler.com (mailto:nichols@hudsonsandler.com)

 

Notes to Editors:

Nichols plc is an international diversified soft drinks business with sales in
over 73 countries, selling products in both the Still and Carbonate
categories. The Group is home to the iconic Vimto brand which is popular in
the UK and around the world, particularly in the Middle East and Africa. Other
brands in its portfolio include SLUSH PUPPiE, Feel Good, Starslush, ICEE, Levi
Roots and Sunkist.

For more information about Nichols, visit: www.nicholsplc.co.uk
(http://www.nicholsplc.co.uk)

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the company's obligations under Article 17 of
MAR.

 

 

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