Another Strong Performance by Nichols
UK soft drinks company Nichols has continued its positive trading momentum in the second half of 2012 with total sales for the year ended 31 December 2012 increasing by 9% to £108 million. This performance is ahead of the UK soft drinks market and has been achieved against last year’s strong comparatives (18% uplift on 2010), a challenging UK economy and record wet weather.
The UK market, as measured by AC Nielsen, increased in value by 3.2% for the year to 8 December 2012 with underlying volume down 0.6%. “Despite this challenging market we are pleased to report that our UK business has increased sales by 10% against the prior year with our export sales also increasing by 8%,” says John Nichols, non-executive chairman of Nichols. “Despite another year of significant cost inflation and high levels of promotional activity, we expect, as a minimum, to maintain our operating margins. This has been achieved by a combination of good cost control and ongoing productivity improvements.”
Nichols’ balance sheet remains strong and has continued to generate positive cash in line with expectations. Group profit and earnings per share (EPS) are expected to be significantly ahead of last year and ahead of market expectations. The group’s preliminary results will be announced on 7 March 2013.
Nichols’ brand portfolio includes Vimto, which is sold in over 65 countries, and Levi Roots (soft drinks), Sunkist, Panda & Weight Watchers which are sold in the UK. The group has a leading market position in both the still and carbonate drinks categories and also in the soft drinks on dispense market, where its brands include Cabana, Ben Shaws and Dayla.
