Group Revenue grew slightly to £172.8 million (from £170.7 million in 2023), while overall packaged revenue increased by 4.4%. UK Packaged sales increasing by 6.3%, largely driven by innovation and distribution gains, while international packaged revenue increased by +0.8%.
Adjusted operating profit was up 14.6% to £28.9 million, attributed to a continued focus on cost management. Adjusted profit before tax rose 15.6% to £31.4 million, with Nichols reporting an enhanced adjusted operating margin of 16.7% (up from 14.8% in 2023).
Nichols chief executive Andrew Milne said the drinks firm had delivered another strong performance in 2024 as it continued to ‘successfully’ execute its growth strategy across each of its routes to market.
‘Enduring appeal’
“In the UK, Vimto reached its highest ever retail sales value, demonstrating the enduring appeal of our iconic brand, driven by expanded distribution, new product innovation and our biggest ever marketing campaign, ‘Love the Taste’,” Milne added.
“A strong performance in our international business was driven by volume growth in the Middle East during our 101st Ramadan in the region, as well as significant strategic progress across Africa as we transitioned to a margin-enhancing concentrate model in several markets.”
Other achievements for Nichols last year included a new concentrate model in West Africa that brought production closer to the end consumer, expansion into Malaysia in the fourth quarter, an ‘A’ rating from Integrum ESG (an assessor of ESG credentials) and a move to 51% recycled PET in all of its UK packaged products.
Nichols’ outlook
Looking ahead, Nichols anticipated a further strengthening of performance across 2025, with trading to date positive and in line with management expectations. The drinks firm said it was confident in its ability to deliver further strategic progress and a continued strong financial performance, in line with the group’s medium-term financial ambitions.
“At our Capital Markets Day in November, we outlined our medium-term financial ambitions and a clear roadmap for growth.” Milne continued. “We operate in a resilient and growing category and are well positioned to capitalise on the significant opportunities across both our UK and international markets, leveraging the strength of the Vimto brand.
“Underpinned by our diversified business model, strong brand portfolio, and solid financial position, I remain confident in our ability to drive high-margin, cash-generative growth and deliver long-term value for our shareholders.”
Meanwhile, Poultry producer Avara Foods suffered a £49.4 million loss during the year up to 31 May 2024.
