Last checked at 24 Apr 2024 07:00
24 April 2024
Nichols plc
(the "Company" or "Group")
AGM Trading Update
Trading in line with expectations; FY24 adjusted PBT expectations remain unchanged
Nichols plc, the diversified soft drinks Group, provides the following trading update for the three months to 31 March 2024 ("the Period"), to coincide with the Company's Annual General Meeting ("AGM") taking place later today.
Trading in 2024 has started in line with management expectations reflecting the Group's continued strategic progress. Strong growth in the UK Packaged business was offset by an anticipated decline in International revenue due to the phasing of shipments and strong prior year comparatives as well as the continued successful rationalisation and focus on profitability in the Out of Home (OoH) business. As a result, Group revenue decreased 5.9% year-on-year to £38.8m.
UK Packaged revenues increased by 6.8% to £20.4m, driven by an underlying volume increase of 4.4% over the Period. The Vimto brand continued to grow in value largely reflecting new product innovation and increased distribution.
International Packaged revenues decreased by 23.0% to £9.8m, reflecting the timing of shipments into the Middle East and reduced volumes in Africa, which benefited from one-off launch volumes into Ivory Coast during the same period last year. We continue to expect the International business to deliver profitable growth across the full year.
In-line with our strategic plan, OoH revenues declined by 6.2% to £8.6m, reflecting the withdrawal from unprofitable accounts in the second half of FY23. The OoH business continues to show improved profitability as the benefits of the strategic review are realised.
Cash and cash equivalents at the end of the Period were £73.0m (31 December 2023: £67.0m).
Outlook
The Board remains confident that the Group, underpinned by the strength of the Vimto brand and the Group's diversified international business model, is well placed to deliver profitable growth in the coming year and achieve its long-term strategic ambitions. The Group's Adjusted PBT1 expectations for FY242 remain unchanged.
1 Excluding exceptional items
2 FY24 expectations refers to a Group compiled market consensus of adjusted PBT £28.8m
Notes to Editors: Nichols plc is an international diversified soft drinks business with sales in over 60 countries. 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 SLUSH PUPPiE, Starslush, ICEE, Levi Roots and Sunkist. For more information about Nichols, visit: www.nicholsplc.co.uk This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR. | |||||||