Nichols Lifts Sales and Improves Profitability
UK soft drinks group Nichols has reported a 2% rise in sales to £109.9 million and a 10% rise in profit before tax (pre-exceptional items) to £22.5 million for the year ended 31 December 2013. The group’s UK sales grew 2% to £86.8 million.
The Nichols brand portfolio includes Vimto, which is sold in over 65 countries and Levi Roots (soft drinks), Sunkist, Panda and Weight Watchers which are sold in the UK. The group has a leading market position in both the ‘still’ and ‘carbonate’ drinks categories.
In the second half of 2013 Nichols’ sales performance started to gain momentum and showed a 4% increase over the same period in 2012.
During 2013, Nichols successfully delivered its strategy to improve profitability by focusing on value over volume. As a result operating profit margin (pre exceptional items) increased from 19% to 20%.
“Although economic indicators suggest signs of optimism, there is evidence that consumer spending in the UK remains cautious and we expect the UK retail market to remain challenging in 2014,” says John Nichols, non-executive chairman of Nichols. “Despite this environment we are confident that the group can maintain its strong performance into 2014. We will continue to invest in our brands and grow distribution in both our UK and international markets. January saw the launch of the “Vimto Squeezy” product which takes the brand into the new ‘water enhancer’ category and in April consumers will see the new Vimto TV campaign.”
