Nichols Impacted by the Effects of Covid-19
Nichols, the UK diversified soft drinks group, has reported a 48.9% decrease in adjusted profit before tax to £6.8 million for the half year ended 30 June 2020 on revenue down by 17.3% to £59.2 million against the first half of 2019. Profit before tax declined by 78.2% to £2.9 million.
Nichols has been impacted by the effects of Covid-19 in both the carbonates and still product categories,. Revenue from carbonated products is down 28.8% to £26.8 million and sales of still products decreased by 4.6% to £32.4 million.
In the UK, revenue decreased by 19.7% versus last year. However, within this, the Vimto brand’s value increased by 6.6% year to date against a soft drinks market performance of +1.3% (Nielsen to 13.06.2020), driving further market share gains. Sales across the group’s international markets were down 8.1% to £13.3 million.
John Nichols, non-executive chairman of Nichols.
John Nichols, non-executive chairman of Nichols, comments: “Our first and most important objective through this unprecedented period has been the protection and wellbeing of our employees and customers. Throughout these most difficult of times, our colleagues have once again demonstrated their values and commitment and I would like to wholeheartedly thank everyone for their current and future efforts.
“In light of the ongoing impact to the financial results of the group due to the global pandemic, the board remains pleased with the group’s performance. Although the immediate future remains uncertain, we are confident in Nichols’ ability to emerge from this period well-placed to continue to deliver the group’s long-term strategic plan.”
Nichols has announced a number of changes to its board. After seven years as chief executive, Marnie Millard has informed the board of her intention to leave the group. She will stand down on 31 December 2020.
Andrew Milne will be appointed as chief executive of the group with effect from 1 January 2021. Andrew Milne is currently chief operating officer and has been with the group for seven years having joined in July 2013 as commercial director for Vimto Soft Drinks. He has extensive experience in the soft drinks industry having also been sales director for the Northern region of Coca Cola Enterprises before joining Nichols. Prior to that Andrew Milne worked at GlaxoSmithKline as a trading director.
Nichols has also announced the appointment of James Nichols to the board as a non-executive director with immediate effect. John Nichols remains as non-executive chairman of the group.
