The company said the growth had surpassed internal expectations and that the performance had partly been driven by strong international business, which continues to deliver significant year on year growth. It added that the growth had followed a 16% increase in sales in 2009.
Continued pressure
Nichols said raw material cost inflation and high levels of promotional activity had put continued pressure on gross margins in its UK business last year.
But it stressed that operating profit margin would be maintained as a result of productivity improvements and tight control of costs. And it confirmed that the group’s balance sheet remained strong, with underlying cash generation also ahead of external expectations. Consequently, it expects group profit to be significantly ahead of last year.
The firm is launching low calorie soft drinks under the Weight Watchers brand in the UK this month.
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