2025 Preliminary Results

11 March 2026  

2025 Preliminary Results

Delivery of strategic initiatives drives strong profit growth in-line with expectations 

Nichols plc ('Nichols', the 'Company' or the 'Group'), the diversified soft drinks group, announces its Preliminary Results for the year ended 31 December 2025 (the 'Period').

Financial highlights

- Group revenue 1.3% higher than last year at £175.1m (2024: £172.8m), driven by increased volumes in UK packaged and also reflecting the shift in International to a lower revenue but margin-enhanced concentrate model across several African markets and the exit of the low margin Starslush brand in H2

- Overall Packaged revenue increased by +1.8%, with UK Packaged ("UKP") sales up by +3.1%, largely driven by innovation and distribution gains, and 1.5% growth in International on a like-for-like7 basis following the successful strategic shift to the concentrate model

- In-line with our strategy to focus on profitability, Out of Home (OoH) revenue was consistent year-on-year, despite the exit of the low margin Starslush business

- Gross margin remained strong at 46.1% (2024: 45.7%). UK Packaged gross margin increased despite inflationary pressures offset by a disciplined and robust focus on cost management, enhanced by the implementation of the new ERP system

- Increased weighting of higher margin concentrate sales in International Packaged within our Africa business unit

- Adjusted operating profit increased by 9.9% to £31.7m, with an enhanced adjusted operating margin of 18.1% (2024: 16.7%) and adjusted profit before tax increased by 7.0% to £33.6m, reflecting disciplined cost management

- Free cash flow of £13.8m (2024: £17.8m) resulting in cash and cash equivalents of £55.7m (2024: £53.7m)

- Dividend payments of £11.7m (2024: £11.2m ordinary dividend and a special dividend of £20.0m)

o  Investment in new Enterprise Resource Planning (ERP) system of £4.4m (2024: £7.6m)

- The reduction in free cash flow is driven by a timing difference in working capital, driven by phasing of year-end sales, which is expected to unwind in H1 2026

- Final ordinary dividend proposed at 18.7p (2024: 17.1p). Total ordinary dividend of 33.7p (2024: 32.0p)

Strategic and operational highlights

- Sustained growth in UK Packaged delivered the highest ever Vimto Retail Sales Value (RSV) of £129.1m, driven by new product innovation, market share gains across dilutes, energy and ready to drink (RTD) sub-categories.

- The International Packaged division continued to deliver excellent results underpinned by the new concentrate model in West Africa bringing production closer to the end consumer which is continuing to improve margins

- Further simplification of the OoH operating model, including the exit of the low margin Starslush brand

- Significant investment in a new ERP system, which was successfully launched in Q1 and is already delivering benefits/efficiencies across the business

- The brand licensing channel continues to grow, with an enhanced partnership with Myprotein and a new agreement with Applied Nutrition

Current trading and outlook

- Nichols continues to benefit from its diversified, asset-light business model, exciting portfolio of brands and strong balance sheet, and is well-positioned to deliver its medium-term growth strategy

- Trading so far during 2026 has been positive and in line with expectations

- The Board is committed to maintaining a strong balance sheet while prioritising growth in line with its medium-term ambitions and continuing to deliver attractive returns to shareholders. Nichols' strong balance sheet, confidence in the outlook and good cash generation are reflected in the intention to reduce dividend cover to 1.5x during 2026.

Andrew Milne, Chief Executive Officer of Nichols, commented:

"As a result of the continued execution of our growth strategy, Nichols delivered another strong performance in 2025, delivering solid profit growth. In the UK, Vimto has grown across its four key sub-categories, reinforcing the enduring strength and appeal of our iconic brand. Growth has been driven by expanded distribution, investment in our brand and our proven ability to bring compelling new products to market. Our International business delivered impressive growth in Africa, supported by our strategic shift towards a margin-enhancing concentrate model across several West African markets."

"We have an exciting pipeline of initiatives and plans across our markets in the year ahead and remain focused on delivering further progress against our medium-term ambitions, leveraging the strength of the Vimto brand, the Group's diversified business model and strong financial position."

References:

1 Excluding exceptional items

2 Adjusted EBITDA is the adjusted profit before tax, interest, depreciation and amortisation

3 EBITDA is the profit before tax, interest, depreciation and amortisation

4 Free Cash Flow is the net increase in cash and cash equivalents before acquisition funding and dividends

5 Adjusted return on capital employed is the operating profit (excluding exceptional items) divided by the average period-end capital employed

6 Return on capital employed is the operating profit divided by the average period-end capital employed

7 Like-for-like (LFL) converts new concentrate sales volumes into equivalent can sales, enabling a consistent comparison and is a common term used in the industry. Reconciliation to a statutory measure is not applicable.

Contacts

Notes to Editors

Established in 1908, Nichols operates within the resilient soft drinks category and owns or licenses several brands. Nichols is geographically and operationally diversified, operating across three routes to market of UK Packaged, International Packaged and Out of Home.

In the UK, Nichols operates across five soft drinks sub-categories: squash, flavoured carbonates, fruit drinks, energy and flavoured water. Nichols' portfolio includes the iconic Vimto brand plus a growing portfolio of licensed brands including Levi Roots, ICEE, SLUSH PUPPiE and Sunkist.

Under its asset-light model, Vimto is prominent in areas such as the Middle East and Africa and is enjoyed in over 60 countries worldwide.

For more information, visit the website: https://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.

Chair's Statement

I am pleased to present my report on what has been another year of strong progress for the Group.

The business has made good progress in delivering against our key strategic priorities despite a challenging trading environment. Nichols operates in a dynamic sector that demands agility and a readiness to respond to shifting consumer behaviour and market trends. Thanks to the strength of our brand portfolio, our experienced leadership teams, and our asset-light model, we continue to deliver strong growth and robust profitability.

Group revenue increased by 1.3% to £175.1m (2024: £172.8m). Our core Packaged division performed well, delivering 1.8% growth. This was driven by another robust year in the UK, where revenue rose by 3.1%, supported by product innovation, targeted strategic marketing initiatives and important distribution gains. Revenue in our International Packaged division was consistent with 2024, in line with our expectations following our transition towards a lower revenue but margin-accretive concentrate model in selected African markets. Revenue in the OoH business was consistent year‑on‑year, following the exit of the low-margin Starslush business and the focus on driving profitability. Gross profit increased by 2.2% to £80.7m (2024: £79.0m). Adjusted operating profit increased by 9.9% to £31.7m (2024: £28.9m), and adjusted profit before taxation rose by 7.0% to £33.6m (2024: £31.4m).

Strategic Progress

Nichols operates in a resilient and expanding category, with meaningful opportunities for growth across both our UK and International Packaged businesses. Having set a clear strategy and medium-term objectives for the business, supported by investments in our core capabilities, the strong financial performance this year demonstrates the benefits of these foundations and the momentum behind our plans. A particular highlight during the year was the launch of a Company-wide ERP system that will provide a platform for growth and drive enhanced productivity across the business

People

Our continued progress is a direct result of the outstanding contribution of colleagues across the Group. Their professionalism, commitment and teamwork have been central to the successful execution of our strategy. I extend my sincere thanks to all of them for their dedication. The breadth of experience, expertise and passion within our organisation sets us apart and is a key element of our long-term competitive advantage. Stakeholders across the Group benefit from the strength of our people and their drive to deliver exceptional results.

The Board

We had an emotionally difficult start to the year, losing Richard Newman, our CFO, following his battle with cancer. As a highly valued colleague and a pivotal member of the Nichols Board and leadership team, Richard's kindness, professionalism and dedication will be remembered by all who had the privilege of working with him.

We are grateful to David Taylor who rejoined the Company as a non-Board Interim Finance Director in February 2025 and provided invaluable support to the Board. In September, Rebecca Hughes, our Group Financial Controller, succeeded him as Interim Finance Director and will continue in that capacity until the arrival of our new CFO, Matthew Rothwell, in April 2026.

In August 2025, John Gittins stepped down as a Non‑Executive Director after serving a full nine-year term, plus an additional year to support the Group during a period of significant change. We thank John for his dedicated service and his leadership as Chair of the Audit Committee. In March 2025, we were pleased to welcome Alan Williams to the Board as a Non-Executive Director, and he assumed the role of Audit Committee Chair in August. Alan brings extensive experience and capability, and we are delighted to benefit from his insights.

Over the year, we continued to strengthen our succession planning processes to ensure the Board's composition and expertise remain well aligned to the needs and future direction of the business.

Environment, Social and Governance

We remain proud of our commitment to the Nichols Happier Future strategy, which is structured around three core pillars: Everyone Matters, Products We're Proud Of and Owning Our Climate Impact. These principles sit at the heart of our decision-making and are embedded in the development and delivery of our growth strategy.

We made meaningful progress against our pillars this year. Just a few of our achievements in 2025 include:

- Completing the first phase of our packaging lightweighting project, which has removed 750 tonnes of plastic and aluminium in 20251

- Moving from an import model to local production of Vimto in West Africa, reducing the environmental impact of shipping, at the same time delivering local employment opportunities

- Initiating the electrification of our commercial vehicle fleet to reduce significantly our Scope 1 emissions

- Delivering a hugely successful Camp Vimto, supporting 20 young people from our local community with their personal development

As a result of the team's work across the three core pillars, our EcoVadis sustainability rating improved from bronze to silver, putting us in the top 15% of companies surveyed2.

I am particularly pleased that employee engagement levels remain high as we continue to strengthen our distinctive culture and enhance the support we provide to colleagues, including in areas such as mental health, reward and workplace flexibility. We are as proud of our people and values as we are of our financial performance.

Dividend and Capital Allocation

Nichols maintains a clear capital allocation framework focused on sustained investment in growth, both organic and through acquisition where it meets the Board's criteria, combined with a strong balance sheet and a progressive dividend policy.

Reflecting continued strong cash generation, the Board is recommending a final ordinary dividend of 18.7p per share (2024: 17.1p), giving a proposed total ordinary dividend for the year of 33.7p per share (2024: 32.0p). Subject to shareholder approval, the final dividend will be paid to all shareholders on the register at 20 March 2026, with an ex-dividend date of 19 March 2026.

Nichols continues to demonstrate its robust long-term cash generation and held cash and deposit balances of £55.7m at 31 December 2025 (2024: £53.7m). The Board is committed to maintaining the strength of its balance sheet while prioritising investment in growth, in line with its medium-term ambitions, and continuing to deliver attractive returns to shareholders. The Board will continue to assess acquisition opportunities in line with its strict criteria. Nichols' strong balance sheet, confidence in the Group's outlook and good cash generation reflects the intention to reduce dividend cover from 2.0x to 1.5x during 2026, whilst still maintaining its' commitment to return surplus cash to shareholders.

Outlook

The Group continues to benefit from its diversified, asset-light business model, combining its well-established position in the UK with the enhanced growth potential of our International operations. Investment in innovation, product development and the expansion of our international footprint within the Packaged business provide a strong foundation for growth in the near and medium term.

The Group strategy sets a clear and ambitious path forward for each of our business units, underpinned by well-defined financial goals. The Board remains confident in the Group's ability to execute these plans and deliver sustainable returns, supported by our strong brand portfolio, disciplined strategy and solid financial position.

Liz McMeikan

Non-Executive Chair

11 March 2026

References:

1 v. 2022 baseline

2 ecovadis assessment, January 2026

Chief Executive Officer's Statement

Overview 

I am delighted to share our results for the year ended 31 December 2025, a year in which, despite continued market challenges and persistent regulatory change, we delivered another robust performance. Our success is testament to the passion and resilience of our teams, and I am grateful for their commitment and determination to enable us to deliver these strong results. The success of our business is built on our strong values and culture, and I feel proud to see our people bringing those behaviours to life on a daily basis. I also wish to thank our partners for their ongoing collaboration.

Financial Performance 

Revenue was 1.3% ahead of last year at £175.1m which, encouragingly, was achieved through both volume and value increases, reflecting strong consumer demand for our products. We also implemented targeted revenue growth strategies to help mitigate ongoing cost pressures. As a result of these actions, and our disciplined cost controls, I am pleased to report that Group margins and bottom line improved. Gross profit increased by 2.2% to £80.7m (2024: £79.0m) with gross margin increasing from to 46.1% (2024: 45.7%). Adjusted operating profit grew by £2.8m (+9.9%), adjusted profit before tax (PBT) grew by £2.2m (+7.0%) with an adjusted PBT margin of 19.2% (2024: 18.2%).

After net exceptional costs of £4.4m (2024: £7.4m), principally relating to the business change programme and systems development, operating profit was £27.3m (+27.1%) and profit before tax was £29.2m (+21.5%), with a PBT margin of 16.7% (2024: 13.9%).  

Strategy Overview

Our strategy has four key strategic pillars: More from the Core, Thirst for New, Fuel for Growth and creating a Happier Future. We have delivered strong progress across all the geographies we operate in by continuing to execute our plans against these initiatives.

As a result of the successful implementation of this strategy, our portfolio of owned and licensed brands continued to deliver growth in 2025, underpinned by strong performances in our core product ranges and markets, disruptive marketing campaigns and exciting new product innovation launches.

During 2025, we launched a new Enterprise Resource Planning (ERP) system as part of our business change programme to drive future growth and unlock enhanced efficiencies and benefits. A broad range of people across our business have worked with several external partners over the past three years to ensure a seamless transition, and I am pleased to report that the Q1 launch was extremely successful with post go-live support provided by our partners until July, and we have continued to maintain high service levels to all our key customers during the year.

Enabling consumers to enjoy our products every day remains fundamental to our success. We have continued to invest in research and insights to ensure we understand evolving consumer needs and preferences across all of our territories. Adapting our portfolio and marketing plans to meet evolving consumer preferences has been at the core of our success in 2025 and will remain a key driver of our long-term growth.

Our Happier Future strategy continues to be a cornerstone of our long-term vision, and we are pleased to have made further progress against our commitments during the year. 

Market Performance

UK Packaged

In 2025, the UK Packaged division continued its trajectory of sustained growth, achieving a revenue increase of 3.1% compared to 2024. Vimto reached its highest-ever RSV at £129.1 million1, a milestone driven by strategic new product development, marketing programmes driving brand penetration and significant gains in core distribution. The broader Nichols portfolio also performed strongly, attaining a total RSV of £135 million2, a 4.8% year-on-year increase, through the combined strength of Vimto and our licensed brands Levi Roots and Slush PUPPiE.

Our commitment to our category strategy has driven portfolio growth and supported medium-term business goals. In the squash category, we maintained the number two market position with an RSV of £75.2 million3, a 4.6% year-on-year rise, fuelled by value and volume growth from our core range in addition to the launch of our new Vimto squash products including Wonderfuel and Double Concentrate.

Vimto Wonderfuel, our first functional health product targeting the breakfast drinking occasion, launched in Q1 2025 and achieved national distribution across the major UK retailers, with the launch supported by a £1.2m multi-media and activation campaign during the key September back-to-school period. With 10% of Wonderfuel shoppers being new to the squash category4, this exciting innovation has driven category penetration. It also won silver at The Grocer's 2025 soft drinks packaging and products awards.

We also expanded our core Vimto squash range with two double concentrate variants, original and tropical, whilst driving distribution and rate-of-sale growth through targeted shopper activation and in-store investment, including branded bay installations across Sainsburys and Morrisons.

Beyond squash, we continued to drive growth in our ready-to-drink and energy ranges. The launch of Vimto Energy into the wholesale channel, alongside our kids' 250ml proposition, now fortified with vitamins and delivering £1.6 million RSV5, exemplifies our commitment to innovation. In the energy category, both Vimto and Levi Roots have delivered double-digit growth, with a combined RSV of £4.6 million only 2 years after being launched. Vimto Energy alone achieved £4.0 million RSV in 2025, representing a 41% year-on-year increase6. This growth was supported by new pack formats, expanded channels, and incremental gains in grocery multiples, convenience, and online.

The energy category overall continues to demonstrate significant scale and growth, now valued at £2.5 billion7 (+13.3% YoY), with lower sugar and more natural variants gaining prominence. Vimto Energy and Levi Roots Energy remain well-positioned for further expansion into emerging growth segments.

In 2025, our Vimto Masterbrand 'Love the Taste or Your Money Back' campaign returned after its successful 2024 launch. Backed by a record £3.5m investment in a multi-channel campaign and featuring on 36 million packs, it offered consumers a risk-free product trial. The campaign has significantly boosted brand penetration, equity and sales.

The diversity of the Vimto brand, complemented by licensed brands Levi Roots and Slush PUPPiE, supported growth across established customers and secured high-profile distribution in convenience, online and "on the go" locations. For example, during our second full year of trading with Amazon, we have gained further visibility and accelerated online sales, ensuring our brands remain accessible and relevant in a dynamic marketplace.

We also continue to see a strong performance under our brand licensing agreements. Our strategic partnership with Myprotein has further broadened usage occasions in health and wellness, including the launch of Vimto Creatine and Impact Pre Workout. Additionally, our new partnership with Applied Nutrition has strengthened our position in the functional space through the introduction of Vimto energy gels and hydration tablets, expanding the brand into complementary retail channels.

International Packaged

We delivered strong in market volume growth across our international markets in 2025. Growth was particularly strong in Africa with like-for-like revenue is up 9.4% as we continued to build on our new model of local production and working with new and existing importers in broader markets to drive trial and distribution.

In line with our expectations, Middle East revenues declined by 15.5% given the phasing of concentrate shipments during 2025 and 2024 led by the timing of Ramadan. Building on our long-standing relationship with partners Aujan Coca-Cola Beverages Company (ACCBC), Vimto cordial was successfully relaunched in the markets of Yemen and Iraq, adding incremental volume versus prior year. Once again, trade execution across the Gulf was world class during the Ramadan period, with a campaign running across all media platforms and channels.

New product innovation helped to maintain brand equity in the competitive carbonated and ready to drink (RTD) categories in the Middle East. Leveraging Vimto consumers' love of berries and association of Vimto with dark fruits, still Blackcurrant RTD was launched across the Gulf region in October. In-store displays focused on flavour and immunity support with an above the line collaboration with Cartoon Network adding appeal and credibility. In carbonates, the launch of an incremental 330ml can to the existing 250ml range gives Vimto access to the biggest offtake price point segment of the marketplace.

As anticipated, total International revenue was consistent with the prior year reflecting the successful phased transition from a finished goods to a margin-enhancing concentrate model in Africa. Our strategy to move can production closer to the point of consumption provides volume, margin and carbon reduction ESG benefits.

Across our Rest of World markets, principally Europe and North America, building volume has been our key priority in 2025, following our focus on maintaining margins in 2024. These geographies now achieve combined revenues of £9.2m. Revenues in Europe increased by 6.0% versus 2024, as we focused on supply chain efficiency improvements and driving the core range into more distribution points. Revenues in the USA achieved 23.0% growth thanks to the execution of collaborative regional expansion plans with our local partner.

Having launched in Malaysia towards the end of 2024 as part of our geographic expansion plan, we have secured retail listing gains in the market, ensuring Vimto cordial is now available in over 3,000 stores. Working with our local partners, we have executed disruptive campaigns to drive trial and awareness via TV, in-store and outdoor media as well as sampling and consumer give aways. We are continuing to invest strongly through the line to build brand equity, focusing on our differentiated product offering.

Out of Home 

At a macro level the OoH market continued to face challenging conditions with rises in the national living wage, employers NI and the cost of living impacting consumer demand. Despite these challenges, I am pleased to report that we delivered revenue and PBT in line with 2024.

In the first half of the year, we successfully exited from the low margin Starslush business through a new partnership with Polar Krush. While this impacted our 2025 revenue and had a small impact to profitability, it was consistent with our strategy to simplify our OoH business, which is now focused solely on driving profitable growth in post-mix within the leisure and hospitality channel, and ICEE in the cinema channel. 

We were delighted to win distribution for our ICEE brand across the Reel Cinema chain and capitalised on the excitement surrounding the releases of Jurassic World and Wicked 2 by launching four limited edition flavours, generating strong engagement and positive feedback from both customers and consumers. 

Looking Ahead

Our strong financial and operational performance in 2025 reflects the continued execution of our growth strategy across multiple routes to market and the resilience of our diversified, asset-light business model. 

Looking ahead, we anticipate delivering another strong performance in 2026 despite ongoing macroeconomic uncertainty. Trading in 2026 to-date has been positive and in line with our expectations.

We continue to operate in a resilient and expanding soft drinks market, underpinned by a well-balanced portfolio of owned and licensed brands, attractive opportunities for geographical expansion and a strong balance sheet that enables both organic growth and targeted acquisitions. We can execute this growth strategy alongside higher dividend returns for shareholders, and plan to reduce dividend cover to 1.5 times adjusted earnings, a level we see as prudent and sustainable. With a clear set of strategic priorities, a robust business model, and the continued commitment of our teams, we are confident in our ability to deliver sustained growth, strategic progress and generate attractive shareholder returns in line with our medium-term ambitions which were shared at the capital markets day in 20246.

Andrew Milne

Chief Executive Officer

11 March 2026

References:

1 Nielsen IQ RMS for Squash, Flavoured Carbonates, RTDs, Flavoured Water, and Energy categories for 12 months to 27.12.25 for the total coverage market.

2 Nielsen IQ RMS for the Squash category for 12 months to 27.12.25 for the total coverage market

3 Worldpanel | New to Dilute Category | 28 w/e 05 Oct 2025

4 Nielsen IQ RMS for the RTDs category 12 months to 27.12.25 for the total coverage market

5 Nielsen IQ RMS for the Energy category for 12 months to 27.12.25 for the total coverage market.

6 As disclosed on our website https://www.nicholsplc.co.uk/annual-reports-cats/2024/

Financial Review

REVENUE

Group revenue increased by 1.3% to £175.1m (2024: £172.8m). We continued to perform well within our Packaged business, with sales up by 1.8%, driven by growth in the UK Packaged where sales increased by 3.1% versus 2024. International Packaged sales were broadly flat following the success of the ongoing strategic shift towards a margin enhancing, but lower revenue, concentrate model across West Africa. As a result of the concentrate model shift in West Africa, like-for-like sales increased by 9.4% in that region.

Revenue in our OoH business was broadly flat at £39.9m (2024: £40.0m) following the exit from our Starslush brand, in line with our strategy to simplify the OoH business.

GROSS PROFIT

Gross margins have remained strong with improvement driven by a robust focus on cost management enhanced by the implementation of the new ERP system. In our focus on enhancing gross margin, the Group has focused on mitigating inflationary pressures, effective purchasing, value engineering and, where appropriate, increased sales pricing.

As a result of these decisions, gross margin increased to 46.1% (2024: 45.7%), whilst absolute gross profit improved by 2.2% to £80.7m (2024: £79.0m).

DISTRIBUTION EXPENSES

Distribution expenses remained broadly consistent with last year at £10.3m (2024: £10.2m), despite an overall volume increase in the UK Packaged and International Packaged businesses due to careful cost control.

ADMINISTRATIVE EXPENSES

Administrative expenses (excluding exceptional items) decreased in the year by £1.1m to £38.7m. This has been driven by phasing of our marketing spend within our International and Out of Home markets, with further savings on overheads through careful cost control, in the face of rising payroll and staff-related costs in response to cost-of-living pressures.

Including exceptional items of £4.4m (related primarily to the business change programme and systems development as detailed below), administrative expenses were £43.1m (2024: £47.2m).

EXCEPTIONAL ITEMS

The Group has incurred £4.4m of net exceptional costs during the year (2024: £7.4m), almost entirely attributable to the investment made in our business change programme and systems development (detailed below) which is now complete.

Business change programme and systems development

The Group commenced a project in 2022 to identify the potential benefits from replacing current operational and IT processes and systems, which were reaching the end of their planned life, with a cloud-based integrated Enterprise Resource Planning (ERP) solution. During 2024, this project continued to progress well, as we completed the design, build and testing of the systems and processes. Costs of £4.4m (2024: £7.6m) have been incurred throughout the year in completing this work with the system 'going-live' in March 2025. The Group incurred further costs in relation to post go-live support until the end of July and additional build and customisation until the end of 2025. No further exceptional costs are expected in relation to the programme or systems in 2026. Due to the nature of these charges, the Group is treating the costs as exceptional

Out of Home strategic review and restructuring

In 2022 the Group completed a strategic review into its OoH business following a number of changes to the market it serves. This review included an assessment of customer and product profitability and the identification of opportunities to raise operating margins. The changes arising from this review were finalised during 2025 with a charge of £31k being recognised. This restructuring was one-off in nature and was treated as exceptional. The review is now fully concluded.

SEGMENTAL PERFORMANCE

The Group's Packaged business achieved revenue growth of 1.8% versus 2024, driven by our UK Packaged business (+3.1%) where we have seen growth across our 4 key sub-categories. Our International Packaged revenue remained broadly flat. Middle East revenue declines, driven by phasing of concentrate shipments, were offset by strong growth in both Africa and Rest of World markets. Overall Packaged profit growth was strong, with adjusted operating profit increasing by £3.3m (+8.0%) to £43.9m (2024: £40.6m).

The OoH business saw revenues remain broadly consistent with 2024 at £39.9m (2024: £40.0m), reflecting the continued strategic exits of the Starslush brand as part of the OoH Strategic Review. The absolute profitability of the business saw significant improvement in the prior year as a consequence of reducing the cost base and focusing resources more efficiently within OoH, which the group has been able to maintain in 2025. Adjusted operating profit therefore remained consistent at £7.0m (2024: £6.8m).

Central costs increased in the year to £19.2m (2024: £18.6m). The majority of this increase was in employment costs, reflecting both cost‑of‑living increases and investment into additional capability and skills within the Group.

INTEREST INCOME

Net finance income of £1.9m (2024: £2.5m) has been received during the year, with the decrease due to lower deposits following a special dividend in 2024 and falling interest rates.

ADJUSTED OPERATING PROFIT, PROFIT BEFORE TAX, PROFIT BEFORE TAX AND TAX RATE

Adjusted operating profit (excluding exceptional items) increased by 9.9% to £31.7m (2024: £28.9m). Adjusted profit before tax (excluding exceptional items) increased by 7.0% to £33.6m (2024: £31.4m) and profit before tax (including exceptional items) increased by 21.5% to £29.2m (2024: £24.0m). The effective tax rate for the year has increased to 26.5% (2024: 25.6%).

ADJUSTED EARNINGS PER SHARE AND EARNINGS PER SHARE

Adjusted earnings per share ('adjusted EPS') increased by 5.5% from 64.02p to 67.53p. Earnings per share were 58.67p (2024: 48.84p).

CASH AND CASH EQUIVALENTS AND BALANCE SHEET

The Group's cash generated from operating activities remained strong at £21.0m (2024: £23.0m) and our cash conversion performance was 102% (2024: 77%). Our free cash flow, after the payment of tax and capital expenditure, was down £4.0m at £13.8m (2024: £17.8m). The reduction in free cash flow, despite an increase in cash conversion, is driven by a timing difference in working capital and is expected to unwind in H1 2026. Capital expenditure in the period was slightly higher than in 2024 at £1.0m (2024: £0.9m), with the increase largely a result of operational and quality enhancements at our Ross-on-Wye manufacturing facility.

Overall, after the payment of dividends totalling £11.7m (2024: £11.2m ordinary dividend and a special dividend of £20.0m), net cash increased by £2.0m to £55.7m (2024: decrease of £13.3m to £53.7m). The Group retains substantial cash resources to fund investment in its forward strategic growth plans whilst balancing shareholder returns.

The Group's adjusted return on capital employed increased to 34.1% (2024: 31.0%). Return on capital employed was 29.4% (2024: 23.1%).

Andrew Milne

Chief Executive Officer

11 March 2026

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2025

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2025

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2025

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2025

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

As at 31 December 2025

NOTES

1. Basis of Preparation

The preliminary financial information does not constitute statutory accounts for the financial years ended 31 December 2025 and 31 December 2024 but has been derived from those accounts. The accounting policies remained unchanged from those set out in the 2024 Annual Report and Accounts.

Statutory accounts for 2024 have been delivered to the Registrar of Companies and those for the financial year ended 31 December 2025 will be delivered following the Group's Annual General Meeting. The auditors have reported on those accounts and their reports were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

2. Use of estimates and judgements

The preparation of financial statements requires management to make estimates, judgements and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Due to the nature of estimation, the actual outcomes may differ from these estimates.

Carrying value of brand support accruals

The Group incurs significant costs in the support and development of the Group's brands. Recorded within accruals are amounts related to Discounts, Rebates, Promotional Costs and Brand Support Arrangements. The majority of costs incurred on these arrangements have been settled at 31 December 2025, however certain judgement is required in determining the level of closing accrual required at a year end for promotions and brand support campaigns that either span two financial years or where the costs have not been fully settled by the year end date.

In order to comply with the Groceries Supply Code of Practice (GSCOP) and the Forensic Auditing: Retailer Voluntary Commitment (FVARC), brand support accruals for designated retailers are held for up to 3 years, being the necessary 2 years plus an additional year to allow for any differing accounting periods of the designated retailers.

Promotions and brand support campaigns comprise:

Long term discounts and rebates

· Fixed: a defined amount over a period of time

· % of net revenue: a percentage of net revenue, which may have associated hurdle rates

Short term promotional discounts

Promotional discounts consist of many individual rebates across numerous customers and represent the cost to the Group of short-term deal mechanics. The common deals typically include price reductions for specific SKUs during a promotional period.

To provide an amount for these brand support accruals at the end of a period requires a degree of estimation supported by historical data and experience. The accruals are calculated using the expected value approach with key judgements being redemption rates and sell in/sell out timing.

Retro promotions are recorded based on sales data, of sales to Nichols' customers. Nichols' Customers claim based on their sales data to their customers. Management therefore make a judgement on the redemption rate to account for this difference in policy. The introduction of the new Trade Promotion Management system will provide management with better data for calculating estimates.

As part of the calculations of the Accruals at 31 December 2025, management have considered various sensitivities against redemption rates which is a key judgement. An increase of 5% to redemption rates results in an increase of £140,000 to the accrual whereas a decrease of 5% to redemption rates results in a decrease of £140,000 to the accrual.

Defined benefit obligations

Accounting for retirement benefit schemes under IAS 19 requires an assessment of future benefits payable in accordance with actuarial assumptions. The assumptions include discount rate, inflation, pension and salary increases, expected return on scheme assets, mortality and other demographic assumptions which represent a key source of estimation uncertainty for the Group.

3. Going Concern

In assessing the appropriateness of adopting the going concern basis in preparing the Annual Report and Accounts, the Directors have considered the current financial position of the Group and its principal risks and uncertainties. The review performed considers severe but plausible downside scenarios that could reasonably arise within the period as well as a stress test model.

Our modelling has sensitised the impacts of ongoing geopolitical uncertainty, including in the Middle East, in particular the disruption to global supply chains and the impact on macroeconomic inflationary factors. Alternative scenarios, including the potential impact of key principal risks from a financial and operational perspective, have been modelled with the resulting implications considered. In all cases, the business model remained robust. The Group's diversified business model and strong balance sheet provide resilience against these factors and the other principal risks that the Group is exposed to. At 31 December 2025 the Group had cash and cash equivalents of £55.7m with no external bank borrowings.

On the basis of these reviews, the Directors consider the Group has adequate resources to continue in operational existence for the foreseeable future (being at least one year following the date of approval of the Annual Report and Accounts) and, accordingly, consider it appropriate to adopt the going concern basis in preparing the financial statements.

4. Segmental Reporting

The Board, as the entity's chief operating decision maker, analyses the Group's internal reports to enable an assessment of performance and allocation of resources. The operating segments are based on these reports.

The accounting policies of the reportable segments are the same as the Group's accounting policies. Segment performance is evaluated based on adjusted operating profit (excluding exceptional items), finance income and exceptional items. This is the measure reported to the Board for the purpose of resource allocation and assessment of segment performance.

Packaged comprises the Group's manufactured concentrate and packaged bottle and can sales for distribution through grocery stores, wholesalers, convenience stores and independent retailers. Out of Home comprises the Group's postmix soft drinks, premium mixers and ICEE frozen drinks for consumption out of home.

1 Central includes the Group's central and corporate costs, which relate to salaries and head office overheads such as rates, insurance and IT maintenance as well as the costs associated with the Board and Executive Leadership Team, Governance and Listed Company costs.

A geographical split of revenue is provided below:

5. Exceptional items

The Group incurred £4.4m of exceptional costs during the year (2024: £7.4m).

Business Change Programme and Systems Development

The Group commenced a project in 2022 to identify the potential benefits from replacing current operational and IT processes and systems, which were reaching the end of their planned life, with a cloud-based integrated Enterprise Resource Planning (ERP) solution. During 2025 this project was completed and the system went live in March. Costs of £4.4m (2024: £7.6m) have been incurred in completing this work. Due to the nature of these charges, the Group is treating the costs as exceptional. This project ended during the year, therefore no future costs are expected to be classified as exceptional.

Historic Incentive Scheme

During 2022 the Group finalised the treatment of a historic incentive scheme with HM Revenue and Customs and agreed to pay a sum in settlement of additional tax and interest liabilities. The Group also commenced the process of the recovery of debts from current and former employees who had indemnified the Company. A reserve was put in place to provide against the potential irrecoverability of some of these debts. Progress has been made in the collection of outstanding amounts throughout 2025 and will continue into 2026.

Out of Home Strategic Review and Restructuring

In 2022 the Group completed a strategic review into its OoH business following a number of changes to the market it serves. This review included an assessment of customer and product profitability and the identification of opportunities to raise operating margins. The changes arising from this review were finalised during 2025 with a charge of £31k being recognised. This restructuring was one-off in nature and was treated as exceptional. The review is now fully concluded.

Due to the one-off nature of these charges, the Board treated these items as exceptional costs and their impact was removed in all adjusted measures throughout this report.

6. Earnings Per Share

Basic earnings per share is calculated by dividing the Group's profit after tax for the year by the weighted average number of

ordinary shares in issue during the financial year. The weighted average number of ordinary shares is calculated by adjusting

the shares in issue at the beginning of the period, excluding any treasury shares and shares in the ESOT of 36,522,489 for

the following:

• Shares bought back or issued during the period which was 41,386

• Multiplied by a time-weighting factor to get an adjustment of 25,190

This gives a weighted average number of shares of 36,547,679.

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue assuming the

conversion of all potentially dilutive ordinary shares.

The earnings per share calculations for the period are set out in the table below:

Adjusted earnings per share before exceptional items has been presented in addition to the earnings per share as defined in IAS 33 Earnings per share since, in the opinion of the Directors, this provides shareholders with a more meaningful representation of the earnings derived from the Group's operations. It can be reconciled from the basic earnings per share as follows:

7. Property, plant and equipment and Intangibles

8. Defined Benefit Pension Scheme

The Group operates a defined benefit plan in the UK. A full actuarial valuation was carried out on 5 April 2023 and approximately updated to 31 December 2025 by an independent qualified actuary.

A summary of the pension surplus position is provided below:

The Trust Deed provides Nichols plc with an unconditional right to a refund of surplus assets assuming IFRIC 14 paragraph 11(b). Furthermore, in the ordinary course of business, the Trustee has no rights to unilaterally wind up, or otherwise augment the benefits, due to members of the scheme. Based on these rights, the net surplus has been recognised in full as at 31 December 2025.

9. Dividends

The final dividend proposed is 18.7p. Subject to shareholder approval, the final dividend will be paid to all shareholders on the register at 20 March 2026, with an ex-dividend date of 19 March 2026.

10. Cash and cash equivalents

Included within cash at bank and in hand are short-term deposits of £22,526,322 (2024: £32,286,000) that are readily convertible to known amounts of cash.

The Group operates set off arrangements with Royal Bank of Scotland PLC to facilitate the day-to-day management of cash. The Group has presented the amounts held within the set off arrangement on a gross basis without netting off individual accounts that are in credit or overdrawn.

Annual Report and Accounts

The Annual Report and Accounts will be mailed to shareholders and made available on our website during March 2026. Copies will be available after that date from: The Secretary, Nichols plc, Laurel House, Woodlands Park, Ashton Road, Newton-le-Willows, WA12 0HH.

Cautionary Statement

This Preliminary Report has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. The Preliminary Report should not be relied on by any other party or for any other purpose.

-Ends-