UK's Nichols H1 revenue rises 4.7% on Africa growth
UK's Nichols H1 revenue rises 4.7% on Africa growth
Overview
UK soft drinks group's H1 revenue rose 4.7% year-on-year to £89.5 mln
Adjusted basic EPS for H1 increased 1.3% to 30.30p
Company raised interim dividend 35% as cash generation hit record levels
Outlook
Nichols expects FY26 performance in line with market consensus
Company remains confident in delivering further progress in H2 2026
Nichols is monitoring geopolitical uncertainty in the Middle East and macroeconomic conditions
Result Drivers
AFRICA GROWTH - Strong revenue growth in Africa driven by increased distribution, strong demand and continued investment, with transition to higher-margin concentrate model supporting profitability
UK INNOVATION & DISTRIBUTION - UK Packaged revenue rose on new distribution wins, value share gains in Carbonates, momentum in Energy and innovation-led growth
OPERATIONAL EFFICIENCY - Gross margin remained resilient as procurement initiatives and operational efficiencies offset inflationary cost pressures
Company press release: ID:nRSc2646Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 89.50 mln |
|
H1 Adjusted Pretax Profit |
| GBP 15 mln |
|
H1 Basic EPS |
| GBP 0.30 |
|
H1 Free Cash Flow |
| GBP 17.30 mln |
|
H1 Pretax Profit |
| GBP 15 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the non-alcoholic beverages peer group is "buy"
Wall Street's median 12-month price target for Nichols PLC is GBp1,245.00, about 22.7% above its July 28 closing price of GBp1,015.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
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July 28 - Orange raises profit, cash flow targets on Africa growth
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)