Soft drinks maker Nichols boosts profits and payout as Vimto sales grow in 110th year
Soft drinks maker Nichols boosted profits and hiked investor payout as Vimto proves popular in its 110th year.
Pre-tax profit grew four per cent to £31.8m for the full year compared with 2017, while group revenue rose seven per cent to £142m.
Read more: Vimto adds some fizz to owner Nichols
The final dividend for shareholders increased by 14.5 per cent to 26.8p, the company said this morning.
Total sales increased by 12.7 per cent to £114.6m
Vimto sales grew 12.9 per cent over the year and its brand value increased by £10.6m to £87m, according to data from Nielsen.
Why it’s interesting
Vimto celebrated its 110th year in 2018 and, despite increased competition in the soft drinks market, enjoyed one of its best summers in many years.
Nichols said its fastest growth came from the company’s ‘no added sugar’ products, while its Vimto Out of Home business – supplying packaged and frozen soft drinks to venues across the UK – also enjoyed double digit growth.
Its year end inventories value was £2.4m higher than the previous year, due to Brexit planning, Nichols said.
The company's shares rose 4.2 per cent to 1,600p following its results.
What the company said
Non-executive chairman John Nichols said: “2018 was a significant year for the Vimto brand, marking 110 years since my grandfather invented the drink that today is still enjoyed in the UK and around the world.
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“I am pleased therefore, to announce another strong performance from Nichols plc during this special year.”
He added: “The UK sales performance was driven by the strength of the Vimto brand, now in its 110th year and continuing to outperform the wider soft drinks market, in addition to the increasing growth opportunities in the Out of Home sector following successful investment in this area.”