Slides
Page 1
Nichols Acquisition of VITHIT Earnings enhancing acquisition of a high- quality brand in an attractive category with a complementary asset light model WE MAKE LIFE Taste BETTER LOW CALORIE VIT - HIT VITS JUICE AQUA TEAS
Page 2
2 ACQUISITION HIGHLIGHTS 033 Strong strategic fit with a complementary asset-light model 1 VITHIT is a market-leading functional soft drinks brand 2 Total cash consideration of €75m (c.£64m) on a debt-free, cash-free basis 5 Clear organic growth opportunities & synergy benefits 6 Acquisition will enhance attractive shareholder returns 4 Immediately earnings enhancing & funded from cash 2
Page 3
WHAT WE TOLD YOU AT THE INTERIM RESULTS MACRO CONSUMER TRENDS Health seen as a lifestyle and no longer aspirational but integral Consumers looking for elevated experiences – experimentation and quality Consumers seeking out more premium experiences for occasions that matter most ACQUISITION HUNTING GROUNDS HEALTH & WELLBEING NEXT GENERATION ENERGY EVENING Functional health & wellness RTD coffee/natural energy Premium adult unwind/ social 3
Page 4
4 THE UK SOFT DRINKS SECTOR IS FORECAST TO GROW BY £2.2 BILLION BY 2030 THIRST FOR NEW WHITE SPACE WHITE SPACE Base Data: Nichols Demand Spaces Nov 2024: Kantar Worldpanel and Nichols Growth Platform Update May 2025: ForgeMSQ CAGR% 4
Page 5
• Operating across 3 core categories • Still drinks / PET • Sparkling / Cans • Effervescent powders • 100% Recommended Daily Allowance of 8 essential vitamins • Low sugar, low calorie, great taste • Asset light business model • Strong presence in the UK’s fast-growing functional drinks market ABOUT VITHIT A differentiated, proven and highly scalable functional drinks brand 5
Page 6
VITHIT PRODUCT PORTFOLIO Effervescent hydration sachets 500ml bottle 4-packs 500ml PET bottles 330ml can sparkling 6
Page 7
7 VITHIT - THE PERFECT STRATEGIC FIT PORTFOLIO OPERATING MODEL CAPABILITY FIT ACCELERATE GROWTH IN OUR PACKAGED BUSINESSFull alignment to Nichols’ growth strategy • Expands presence in fast- growing health & wellness category • Complements Vimto, Wonderfuel and Myprotein Water • Unlocks new consumer occasion • Asset-light • Outsourced manufacturing • Brand-led growth • Similar route-to-market model • Nichols distribution strength • Commercial execution • Customer relationships • International expertise 7
Page 8
8 STRONG SCALED BUSINESS WITH SIGNIFICANT GROWTH POTENTIAL ACCELERATE GROWTH IN OUR PACKAGED BUSINESS How Nichols can accelerate VITHIT’s growth UK MARKET PRESENCE LEVERAGE NICHOLS DISTRIBUTION BASE STRONG IRISH POSITION 13 INTERNATIONAL MARKETS INNOVATION PIPELINE BRAND INVESTMENT PROTECT & GROW ACCELERATE EXPANSION PROVEN GO-T0- MARKET DELIVERY ENHANCED INVESTMENT 8
Page 9
Financials
Page 10
10 FINANCIAL OVERVIEW ACCELERATE GROWTH IN OUR PACKAGED BUSINESSA profitable business with attractive growth and cash generation 10 • Revenue €26.5m, +9.5% 3-year CAGR • Adjusted Operating Profit c.€4.2m • Strong Operating profit margin 15.8% • Asset-light model • c.20% effective tax rate • Strong cash conversion Note: Financial metrics per the Audited Consolidated Financial Statements of Vit Hit Limited for the financial year ended 31 December 2025 and the Group Information memorandum
Page 11
11 SYNERGIES AND VALUE CREATION ACCELERATE GROWTH IN OUR PACKAGED BUSINESSMultiple identified levers to accelerate earnings growth Revenue synergies • UK distribution expansion • Greater promotional effectiveness • International growth • NPD acceleration Cost synergies expected to be more than €1 million per annum • Overhead leverage • Procurement • Support function efficiencies post ERP investment Tax optimisation • Existing Irish platform • Efficient operating structure 11
Page 12
12 ATTRACTIVE AND DISCIPLINED FINANCIAL RETURNS ACCELERATE GROWTH IN OUR PACKAGED BUSINESSImmediate earnings enhancement and strong long-term returns • Fully aligned to M&A criteria • Immediately earnings enhancing • Positive contribution to EPS • Supports long-term DPS growth • Attractive NPV 12
Page 13
13 THE GROUP IS FINANCIALLY STRONG WITH 1.5x DIVIDEND COVER MAINTAINED ACCELERATE GROWTH IN OUR PACKAGED BUSINESSClear and robust integration plan underpinned by a comparable asset-light business model Financing: • Cash funded • New RCF facility for working capital only • Strong liquidity maintained • Cash will continue to build • No change to recently improved dividend cover Integration: • Similar asset-light operating models • Clear integration plan 13
Page 14
Summary
Page 15
15 ACCELERATING NICHOLS’ GROWTH ACCELERATE GROWTH IN OUR PACKAGED BUSINESSVITHIT accelerates Nichols’ long-term evolution into a broader packaged portfolio of growth brands • Leading functional drinks brand • Exposure to attractive health & wellness category • Highly complementary to Nichols • Immediately earnings enhancing • Significant long-term growth runway 15
Page 16
16 Acquisition of VITHIT supports further progress against strategic ambitions SUMMARY o Delivery of H1 2026 financials o Accelerated growth delivered in Africa o Strong innovation launches planned in H2 including Myprotein Protein Water o Acquisition of VITHIT in fast-growing health & wellness category o Continued momentum for H2 2026 o Well positioned to further drive long-term shareholder value 16