Vimto growth helps Nichols first-half profit up 193%

Shares of Merseyside-based Vimto and soft drinks firm Nichols plc rose about 4% on Wednesday after it said its revenue rose 13.8% to £67.4 million in the half year ended June 30, 2021, while profit before tax soared 193.4% to £8.6 million.

Nichols said interim dividend will be 9.8p per share.

Nichols’ other brands include Feel Good, Starslush, ICEE, Levi Roots and Sunkist.

Vimto’s international growth was up 42.3% versus the prior year, with “in market” Middle East volumes remaining resilient through Ramadan, with Africa delivering strong revenue growth of 22.8%.

Nichols chairman John Nichols said: The continued strong performance of the Vimto brand, the group’s robust balance sheet and our diversified business model has ensured a resilient financial performance in the period with growth across each of our reporting segments.

The UK Government’s planned roadmap out of lockdown continues and although at a more cautious pace than originally planned, the group’s positive start to the year means that we remain confident that it will achieve the board’s expectations for the year.

“Longer term, the board is currently assessing the impact of inflationary pressures affecting logistics, labour, plastics and costs associated with increasing environmental legislation.”