23rd Jul 2015 08:07
LONDON (Alliance News) - Nichols PLC Thursday reported growth in profit in the first half of 2015, although revenue remained flat, as it improved its profit margin and continued with its 'value over volume' strategy.
The soft drinks company, which owns brands including Vimto and Sunkist, said it made a pretax profit in the six months to June 30 of GBP10.9 million, up 9% from the GBP10.0 million it made in the first half of 2014, as revenue remained flat at GBP54.7 million. It said it delivered a 200 basis point improvement to its profit margin as it continues to deliver its 'value over volume' strategy.
Nichols said that UK revenue grew 2%, driven by a 3.4% increase in Vimto sales.
The company added that it has bought premium juice drink brand Feel Good as part of its growth strategy. It did not say how much it paid for the brand or any other details of the acquisition.
Nichols will pay an interim dividend of 8.0 pence, up 13% on the 7.1p paid in the first half of 2014.
"We are satisfied with the group's results in the first half of 2015, in particular the continued strong performance from the Vimto brand in a challenging UK market. Nichols is well positioned to continue its growth trend," Chairman John Nichols said in a statement. "The balance sheet remains strong, and we look forward to the incremental contribution from both the Feel Good brand and the partial acquisition of The Noisy Drinks Co Ltd announced at our AGM earlier in the year."
Nichols added: "In summary, the board is confident that full-year performance will be in line with market expectations."
Shares in Nichols were trading up 1.9% at 1,354.00 pence Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Nichols plc