FDBusiness.com

Nichols Delivers Strong First Half Performance

 Breaking News
  • £3.7 Billion Worth of Discounts Disappear From UK Supermarket Shelves as Promotions Fall to Lowest Levels in 10 Years The pressure on UK retailers to be more transparent in their pricing has seen the number of trade promotions fall to their lowest levels for 10 years, and in 2017, shoppers will receive £3.7 billion less in promotional savings. This is according to a new report by IRI, the provider of big data and predictive analytics [...]...
  • Whisky, Tequila and Gin to Drive Global Spirits Category Growth to 2021 Just released data from the IWSR 2017-2021 Forecast suggests global volumes of whisky, gin and tequila are expected to make gains of 55.2m, 7.1m and 5.8m nine-litre cases respectively over the next five years, following their rapid growth in 2016. These categories together with baijiu (+48.2m cases between 2016 and 2021), will contribute the most in the [...]...
  • Huge Export Win to China For UK Food Producers A new export deal with China will bring a £200 million boost to the UK food industry and support 1,500 jobs. Taking advantage of the growing demand for UK and drink in China, seven new businesses in England and Northern Ireland have secured access to export pork – including three producers who, in a first [...]...
  • CSM Bakery Solutions Closes Sale of BakeMark Business CSM Bakery Solutions, a global leader in bakery ingredients, products and services, has completed the sale of its BakeMark business to private equity firm Pamplona Capital Management. The sale of BakeMark, which was announced mid-July, is an important element in CSM’s decision to focus on their core business in Europe and North America. “Completing the sale [...]...
  • Needham Coding Ireland to Show Own Brand ‘N’ Series CIJ Printers For the First Time Newly established business, County Westmeath-based Needham Coding Ireland Limited, which was formed following a merger between The Needham Group and long-standing Irish distributor, Advanced Coding Solutions (ACS), will be highlighting a wide range of continuous ink jet (CIJ), thermal ink jet (TIJ) and laser coding and marking equipment, and associated printer inks and makeup at [...]...
  • Mars Food Expands its Portfolio With Acquisition Mars Food, part of Mars Incorporated, is acquiring Preferred Brands International, a US-based, fully integrated manufacturer and marketer of all-natural, ready-to-heat Indian and Asian food products sold primarily under the Tasty Bite® brand. Tasty Bite’s® portfolio includes a wide range of vegetarian offerings, including Indian/Asian entrees, spice and simmer meal kits, and organic rice and [...]...

Nichols Delivers Strong First Half Performance

Nichols Delivers Strong First Half Performance
July 24
11:54 2017

Nichols, the UK-based soft drinks group, has reported a 12.4% (10.7% on a constant currency basis) increase in revenue to £63.5 million for the first six months of 2017, and despite input cost challenges faced in the UK has grown adjusted profit before tax by 6.8% to £12.7 million.

Nichols has sales in over 85 countries, selling products in both the still and carbonate categories. The group is home to the iconic Vimto brand which is popular in the UK and around the world, particularly in the Middle East and Africa. Other brands in its portfolio include Feel Good, Starslush, Levi Roots and Sunkist.

In the UK, revenue rose by 6.7% to £47.5 million in the first half. This performance compares favourably to the total soft drinks market which showed total growth of 2.9% in the same period (Nielsen year to date to 17 June 2017). Within the UK, the Vimto brand has continued to outperform the market with sales up 10% versus the same period in 2016. The Vimto brand’s strong growth has been driven by both the still and carbonate segments and this sustained performance demonstrates the strength of this core brand.

International revenues increased by 33.5% in the period to £16.0 million, which is 24.7% on a constant currency basis. In Africa, revenues were up by 30.9% (20.2% on a constant currency basis), which continues the strong momentum reported in 2016. Sales to the Middle East were 19.8% ahead of the same period in 2016 (15.9% on a constant currency basis).

John Nichols, non-executive chairman of Nichols, says: “Nichols has delivered another strong performance in the first half of the year. Our sales momentum, which continues to outperform the UK market coupled with successful management of input costs has delivered solid profit growth.”

He continues: “Whilst we anticipate that market conditions will remain challenging during the second half of the year, we have a clear strategy and, underpinned by the strength of our brands and our diversified business model, we are confident of delivering full year results in line with expectations.”

Acquisitions are a key component of Nichols’ strategic growth plan, as demonstrated in recent years with the group’s successful move into frozen beverages via the purchase of The Noisy Drinks Co and the addition of the Feel Good brand.

Nichols has now added the DJ Drink Solutions business to its portfolio. DJ is the largest of Nichols’ out of home dispensed soft drinks distributors covering the North West and North East regions of the UK. The acquisition consolidates Nichol’s route to market in the two regions and is consistent with its successful business model already operating in other regions in the UK.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements