Full year 2021 profits expected to be ahead of current market expectations
Press release date: 5th November 2021
Nichols plc, the diversified soft drinks Group, provides the following trading update for the first nine months of the year to 30 September 2021 (“the period”).
Group revenue for the period was ahead of the Board’s expectations, increasing by 17% year on year to £107m.
The Vimto brand has continued to deliver a strong performance across all of its markets. In the UK, Vimto brand value has increased by 4.5% YTD, according to Nielsen1. In Africa, the Middle East, Europe and the US the brand continued to see progress year on year, with International revenues increasing 36% versus the prior year. The Group’s Out of Home (“OoH”) route to market continues to recover from the impact of the pandemic and has seen growth of 29% year on year.
Cash generation has continued to be very positive through 2021 and despite the ongoing financial challenges posed by the pandemic, cash and cash equivalents at the end of the period were £55.6m (30 September 2020: £45.4m).
Although uncertainty remains regarding Q4 trading as a result of increasing Covid-19 infection rates in the UK, in light of the strong trading in the year to date the Board now believes that Adjusted Profit Before Tax (“Adjusted PBT”)2 for FY21 will be ahead of the current market consensus3. The Board now anticipates that Adjusted PBT for FY21 will be in the range of £21m – £22m.
Whilst the Group’s revenue momentum is expected to continue into 2022, the outlook for the next financial year is adversely impacted by inflationary pressures including logistics, labour and materials, therefore profit expectations for 20224 remain unchanged. The Group intends to provide its next trading update on 12 January 2022.
1 Nielsen Total Coverage Year to Date 9.10.2021
2 Excluding Exceptional items
3 Current market expectations refer to a Group compiled consensus for FY21 of adjusted PBT £19.1m (FY20 Actual £11.6m)
4 Current market expectations refer to a Group compiled consensus for FY22 of adjusted PBT £25.2m