15 January 2025

(the "Company" or the "Group")

FY24 Trading Update

Nichols plc, the diversified soft drinks Group, is pleased to provide the following Trading Update for the 12 months to 31 December 2024 ("FY24").

Trading Update

The Group delivered another strong performance in 2024 and expects to report FY24 Revenue and Adjusted Profit Before Tax¹ ("Adjusted PBT") in line with current market expectations². Trading in the second half of the year has continued the positive momentum from the first half and is in line with the Company's growth strategy and medium-term financial ambitions outlined at our Capital Markets Day in November 2024.

Group revenue increased by 0.8% to £172.1m³ during the year (FY23: £170.7m). We continued to perform well within our Packaged business, with full year sales up by 3.8%³, driven by particularly strong growth in the UK where sales rose by 5.4% largely driven by innovation and distribution gains. The International business performed very strongly in the second half, as anticipated, with full year revenues remaining in line with the prior year, despite the shift to a lower revenue but margin enhancing concentrate model across several African markets. In line with the Group's expectations, Out of Home (OoH) revenue reduced by 8.2%³ following exits from unprofitable accounts as part of the actions following the 2022 strategic review.

Gross margins have continued to improve as inflationary pressures eased during the year and as the overall product mix improved. This stability has enabled increased investment in the long-term strategic development of the Group.

Cash generation has remained strong throughout the year and the Group benefitted from increased interest receipts during the year. At 31 December 2024, cash and cash equivalents were £53.7m³ (FY23: £67.0m) after the payment of a special dividend of £20m during the year.

Outlook

The Group continues to derive considerable benefit from its diversified business model, with an established UK position complemented by the significant growth opportunities within the International business. Within the Packaged business, the Group continues its strategy of investing in extending the product range and in the development of its international markets, both of which are expected to continue to provide growth over the medium-term.

Whilst inflationary pressures now appear to be moderating in the UK, the Board remains mindful of continued uncertainty affecting some of the Group's markets and necessary mitigating actions are in place. Underpinned by the strength of its diversified business model and robust financial position, the Group remains confident that Nichols is well positioned to deliver its strategic plans and medium-term financial ambitions that will continue to generate sustainable shareholder returns.

Andrew Milne, Chief Executive Officer of Nichols, commented:

"I'm pleased to report Nichols delivered a strong performance in FY24, with good progress made against our strategic plan and towards our medium-term financial ambitions.

Our strategy will drive a high-margin, highly cash-generative, diversified business, built on the unique strength of the Vimto brand. Looking ahead, we remain focused on continuing to execute our strategic plans and driving further progress against our medium-term ambitions."  

¹ Before exceptional items

² FY24 consensus is management's aggregated view of analyst forecasts (Revenue £172.7m and Adjusted PBT £30.1m)

³ Unaudited

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