Another Strong Performance by Nichols
UK soft drinks group Nichols has increased profit before tax by 20.4% to £7.2m and sales by 14.4% to £50.5m for the first half ended June 30th 2011. Volumes in the UK soft drinks business were 11% up on last year, delivering a 13% sales increase to £28.3m, against a UK soft drinks market which grew by only 1% in volume terms and 6% in value.
Nichols’ international sales grew by 13% in the first half of the year, with sales to the Middle East up 11% and sales to Africa up 14%, following a strong performance last year.
Nichols’ brand portfolio includes Vimto, which is sold in over 65 countries, and Levi Roots (soft drinks), Sunkist and Panda which are sold in the UK. The group has a leading market position in both the ‘stills’ and ‘carbonates’ drinks categories and also in the soft drinks on dispense market.
In March 2011, Nichols acquired the remaining 50% equity of Dayla Liquid Packing and this has generated additional revenue of £1.4m, which contributed to a 20% increase in sales at the half year for the dispense business. Like for like sales without the incremental Dayla revenues increased by 5% year on year.
A combination of price increases, cost efficiencies, new product development and international business growth has allowed Nichols to maintain its half-year group operating margin despite the continued pressure from raw material cost inflation.
“We have again grown our UK market share and our international business continues to thrive. We expect full year profits will be significantly ahead of last year,” comments John Nichols, non-executive chairman of Nichols.
