Earnings release
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AGM Trading Update Released : 23/04/2025 07:00 RNS Number : 7488F Nichols PLC 23 April 2025 23 April 2025 (the "Company" or Group") AGM Trading Update Trading and FY outlook in line with expectations with the Group well placed to make further progress towards its medium-term ambitions Nichols plc, the diversified soft drinks Group, provides the following trading update for the three months to 31 st March 2025 ("the Period"), to coincide with the Company's Annual General Meeting ("AGM") taking place later today. Group revenue in the Period increased by 1.2% year-on-year to £39.3m (2024: £38.8m), in line with the Board's expectations. UK Packaged revenues increased by 4.0% to £21.3m (2024: £20.4m) driven by continued distribution gains and underlying volume increases for the Vimto brand. As anticipated, International Packaged revenue reduced by 7.6% to £9.0m (2024: £9.8m). This reflects 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, as outlined at the Group's Capital Markets Day last year. The Board remains confident of making continued strategic progress and delivering further profitable growth in the International business for the full year. Out of Home (OoH) increased revenues by 4.6% to £9.0m (2024: £8.6m) with the performance benefiting from the increased focus on targeted business development and profitable growth following the OoH strategic review, which completed in 2023. The Group retains a strong balance sheet with net cash and cash equivalents at the end of the Period of £60.0m (31 December 2024: £53.7m). Outlook The Group's revenue and adjusted PBT1 expectations for FY252 are unchanged. The overall economic impact of recent volatility in global markets arising from tariff changes being implemented by the US Government remains unclear. 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. Furthermore, we expect to benefit from medium-term contractual security in relation to potential cost inflation. We will continue to review our position and manage our approach to business accordingly. Underpinned by the strength of the Vimto brand, Nichols' diversified business model and clear growth strategy, the Group is well positioned to deliver continued profitable growth and make further progress towards its medium-term financial and strategic ambitions. Andrew Milne, Chief Executive Officer of Nichols, commented: "We are pleased to have delivered further strategic progress in Q1. 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 CMD. In the International business, we are making good progress with the shift towards a higher margin concentrate model in several of our West African markets. Whilst the move away from shipping finished product impacts revenue, the concentrate model delivers a step change in margins and positions us well to achieve long-term, profitable growth in these markets. 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." 1 Excluding exceptional items 2 FY25 expectations refer to a Group compiled market consensus of revenue and adjusted PBT of £178.9m and £33.1m respectively
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Contacts Nichols plc Andrew Milne, Chief Executive Officer David Taylor, Interim Finance Director Telephone: 0192 522 2222 Singer Capital Markets (NOMAD & Joint Broker) Jen Boorer / Oliver Platts Telephone: 0207 496 3000 Website: www.singercm.com Berenberg (Joint Broker) Clayton Bush / Alix Mecklenburg‐Solodkoff Telephone: 0203 207 7800 Website: www.berenberg.de Hudson Sandler (Financial PR) Alex Brennan / Hattie Dreyfus / Harry Griffiths Telephone: 0207 796 4133 Email: 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/ This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END TSTEAXLAALLSEFA