27th Feb 2019 08:55
LONDON (Alliance News) - Nichols PLC on Wednesday reported double-digit profit growth in 2018, boosted by strong sales of its Vimto brand.
The fruit flavoured cordial Vimto producer reported pretax profit of GBP31.8 million for 2018, up 11% from GBP28.7 million a year earlier, as revenue grew by 7.0% to GBP142.0 million from GBP132.8 million.
Total sales in the UK business increased by 13% to GBP114.6 million, while the international business delivered a 12% decline in revenue to GBP27.4 million.
"The UK sales performance was driven by the strength of the Vimto brand, now in its 110 year and continuing to outperform the wider soft drinks market," said Non-Executive Chair John Nichols.
Sales to the Middle East were down on the prior year due to the ongoing conflict in Yemen and the timing of shipments to Saudi Arabia, the company said. Meanwhile, Nichols saw a strong sales performance in Africa during the second half of the year, delivering annual growth of 6.5% in this region.
Nichols declared a final dividend of 26.8 pence a share, taking the total payout for 2018 to 38.1p, up 14% from 33.5p paid the year before.
Looking ahead, the company said it expects the UK business to maintain its positive performance in 2019, driven by the strength of the Vimto brand.
"As a result of the group's diversified business model, strong portfolio of brands and successful track record, the board remains confident of delivering continued profitable growth," Non-Executive Chair Nichols added.
Nichols shares were trading 2.0% higher on Wednesday at 1,566.00p each.
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