12th Jan 2021 10:03
(Alliance News) - Vimto owner Nichols PLC on Tuesday hailed the soft drinks brand's "strong" UK growth but noted that declines in the virus-hit on-trade market hurt its annual performance.
Revenue in 2020 is tipped to come in at GBP118.7 million, down 19% from GBP147.0 million, though in line with board expectations.
Adjusted pretax profit is also expected to be in line with guidance. Back in November, Nichols said its adjusted pretax profit would land between GBP11 million and GBP13 million, as much as a 66% fall from 2019's statutory pretax profit and operating profit of GBP32.4 million.
"During the period the Vimto brand achieved strong growth in the UK and the group's International business continued to perform well," Nichols said.
"This progress was offset by declines in the group's UK out-of-home route to market, as a result of the coronavirus pandemic."
Nichols noted that the fourth-quarter "remained very challenging" in the out-of-home market, with tier 3 and tier 4 restrictions in the UK shutting outlets.
Fourth-quarter out-of-home revenue was 84% lower annually, Nichols said.
"Whilst recognising the current and near-term impact of the pandemic on the soft drinks market, the Board continues to believe that Nichols, underpinned by the strength of the Vimto brand, the Group's diversified business model and the robust balance sheet, remains well placed to deliver its long-term strategic ambitions," the company added.
It reports its annual results on March 3.
Separately on Tuesday, THG PLC said its Ingenuity unit is working with Vimto to "digitise its proposition in the UK". The partnership will include the launch of a new direct-to-consumer website.
Nichols shares were down 2.0% at 1,200.00 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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