Vimto producer reports strong top line growth

Nichols-plc-first-half-revenue-results-2023.jpg
Nichols plc which produces Vimto has released its first half revenue results for 2023

Soft drinks group, Nichols plc has seen its revenue increase by 6.6% in the first half of 2023, compared with the same period the year prior.

The group, home to the likes of Vimto, has reported a strong start to the year in its interim (unaudited) report, which reveals a rise from £80.2m in the first half (H1) of 2022 to 85.5m in 2023’s H1. It has also seen a rise of 10.5% in profit before tax (PBT) across the same period.

In line with its strategic plan, the soft drinks producer has been focused on accelerating its packaged division and increasing momentum within its international packaged geographies.

Packaged revenues are now up 10% to £64.5m in H1 2023, compared to £58.5m in the same period last year. Its international packaged revenues have witnessed a 24.6% jump to £21.5m, with revenues in the Middle East rising by 17.5% and African leading with 26.1% growth. 

In terms of the UK, its packaged revenues have seen a 4.5% uptick from £41.3m in 2022 H1 to £43.1m in 2023 H1.

“We are pleased with our encouraging first half performance which again reflects the strength of the Vimto brand. Particularly pleasing is the growth in our core Packaged business, and the continued accelerated momentum across our international markets with very strong performances in Africa, the Middle East and the rest of the world,” said Andrew Milne, chief executive officer.

For the Out of Home (OoH) market, revenues have fallen by 3.5%, which the group says reflects its planned reduction in activity following its OoH strategic review. 

Milne continued: “The Group achieved significant strategic progress during the period, particularly in relation to our Out of Home business where we are making positive changes to simplify operations and focus on the areas of greatest opportunity and profitability. We are on-track to deliver the material benefits of these changes from FY 2024. Meanwhile, we remain focused on accelerating growth in Packaged, both in the UK and internationally, in line with our strategic plan.

“We are mindful that consumer spend is still under pressure from continuing high levels of inflation. However, the Group’s track record, strong brands and diversified business model, alongside the resilience of the wider soft drinks market, support the Board’s confidence in the Group’s long-term growth prospects, and that the Group's Adjusted PBT1 for FY 2023 will be in line with expectations.”

Meanwhile sandwich maker Greencore sees a nearly 2% rise in revenue during the third quarter of 2023's financial year.