(Alliance News) - Nichols PLC on Wednesday reported a "positive" start to 2021, with "strong" growth achieved by the Vimto drinks brand.
The Merseyside, England-based Nichols said total group revenue in the first quarter decreased by 5.9% to GBP30.7 million compared to the prior year, offsetting "significant" declines in the UK Out of Home route to market.
Out of Home revenue in the first quarter was down 92% from 2020's equivalent period, as most of the group's outlets remained closed.
Nichols said the Vimto brand has continued to outperform the wider UK soft drinks market, growing by 4.9% in value terms in the year to date, compared to a 3.2% value growth across the wider UK soft drinks market.
The company said that despite the financial challenges posed by the ongoing pandemic, cash and cash equivalents at the end of the period remained "strong" at GBP43.1 million, down 8.9% from GBP47.3 million as at December 31, 2020.
Looking ahead, Nichols said it remains well-placed to deliver its long-term strategic ambitions due to the strength of the Vimto brand.
"Should the UK government's planned roadmap out of lockdown continue, and assuming the absence of further lockdowns later in the year, the board expects full year adjusted profit before tax to be broadly in line with current market expectations," said Nichols.
Shares in Nichols were up 3.2% at 1,455.00 pence each in London on Wednesday.
By Zoe Wickens; zoewickens@alliancenews.com
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Nichols plc (NICL)