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First-half profits surge 39% at Vimto maker Nichols

By Elaine Watson, 04-Aug-2010

Vimto maker Nichols has posted a 39% leap in pre-tax profit to £6m on sales up 17.6% to £44.2m in the first half.

The soft drinks firm, which also owns the Panda and Starkist brands, said full-year profits would be “significantly ahead of last year".

Non-Executive chairman John Nichols said: “I'm delighted to report we have continued to increase our market share and have again significantly outperformed the sector.

"I'm also pleased our very strong trading in the first half was achieved despite tough comparatives, the prevailing economic uncertainties and an extremely competitive soft drinks sector".

Growth had been driven by distribution gains, continued growth of Vimto and the successful launch of Cherry Vimto in January, he said.

Sales of Cherry are currently running at 9.1% of total 'Vimto Original' sales, the majority of which is incremental business.”

The firm’s dispense operation had also delivered sales and profit growth ahead of the market, he said. “We significantly outperformed the pub and club sector, which experienced a period of decline in the first half year.”

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