Press release date: 11th January 2023

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 £164.9m¹, 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 Nielsen² 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 £56.3m¹ (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