Nichols PLC
LSE:NICL
Nichols PLC
Nichols Plc engages in the production and trade of beverage products. The company is headquartered in Newton-Le-Willows, Merseyside and currently employs 308 full-time employees. The Company’s segments include Still and Carbonate. The firm offers products under the Vimto brand and also offers other brands in its portfolio, which include SLUSH PUPPiE, Feel Good, Starslush, ICEE, Levi Roots and Sunkist. Its portfolio spans still, carbonated, post mix, coffee and frozen drinks. The firm has a diversified over three routes to market, which include United Kingdom Packaged, which sells a range of owned and licensed brands through its grocery stores, cash and carries, convenience stores and corner shop; Out of Home, which delivers full-service soft drinks offer to customers within the leisure, catering and hospitality sectors, and International, which sells Vimto in a range of formats in approximately 73 countries worldwide. Its geographical areas include Middle East, Africa, Rest of the World and United Kingdom.
Nichols Plc engages in the production and trade of beverage products. The company is headquartered in Newton-Le-Willows, Merseyside and currently employs 308 full-time employees. The Company’s segments include Still and Carbonate. The firm offers products under the Vimto brand and also offers other brands in its portfolio, which include SLUSH PUPPiE, Feel Good, Starslush, ICEE, Levi Roots and Sunkist. Its portfolio spans still, carbonated, post mix, coffee and frozen drinks. The firm has a diversified over three routes to market, which include United Kingdom Packaged, which sells a range of owned and licensed brands through its grocery stores, cash and carries, convenience stores and corner shop; Out of Home, which delivers full-service soft drinks offer to customers within the leisure, catering and hospitality sectors, and International, which sells Vimto in a range of formats in approximately 73 countries worldwide. Its geographical areas include Middle East, Africa, Rest of the World and United Kingdom.
Revenue Recovery: Nichols saw a strong rebound with revenue up 21.6% to £144.3 million, returning to near 2019 pre-pandemic levels.
PBT Beat: Adjusted profit before tax rose 87.9% to £21.8 million, at the top end of guidance and market expectations.
Brand Strength: Vimto continued to drive growth in the UK and internationally, especially with 17% revenue growth in Africa and resilience in the Middle East despite a 50% beverage tax.
Cash Position: Cash and cash equivalents increased to £56.7 million, maintaining strong financial flexibility.
Out-of-Home Challenges: The out-of-home segment rebounded 77.4% vs 2020 but remains 31% behind 2019, prompting a full goodwill impairment and a strategic review.
Inflation Pressures: The company faced 13.6% cost inflation, especially in supply chain and materials, but is managing through operational efficiencies and price increases.
Guidance Unchanged: 2022 adjusted PBT guidance remains unchanged, and 2023 is expected to see high-single-digit adjusted PBT growth.
