29 July 2026

(the "Company" or the "Group")

2026 INTERIM RESULTS

Continued strategic and financial progress
Strong cash generation, enhanced shareholder returns and full year expectations maintained

Nichols plc, the diversified soft drinks Group, is pleased to announce its unaudited Interim Results for the half year ended 30 June 2026 (the 'Period'), delivering continued profitable growth, strong cash generation and enhanced shareholder returns, as it continues to execute its growth strategy.

Key Financials

Andrew Milne, Chief Executive Officer of Nichols, commented:

"We are pleased to have delivered another strong period of strategic and financial progress, with revenue growth accelerating to 4.7% supporting further profit growth and record cash generation. Reflecting our earnings growth and revised dividend cover policy of 1.5 times, the Board has increased the interim dividend by 35%.

Our UK Packaged business continued to deliver distribution gains and innovation-led growth, whilst Vimto in Africa once again delivered an excellent performance driven by growth in can sales and the continued success of our strategy to migrate production closer to the point of consumption. We were also pleased to have delivered a successful Ramadan trading period in the Middle East despite ongoing geopolitical uncertainty.

We also announced the launch of Myprotein Clear Whey Protein Water in partnership with THG, extending our innovation pipeline into the growing functional drinks category and demonstrating our ability to leverage trusted brands and partnerships to access attractive adjacent growth opportunities.

Supported by our strong portfolio of brands, geographically diversified model, robust balance sheet and significant financial flexibility, we remain confident in our ability to deliver sustainable growth and create long-term shareholder value. The Board's expectations for the full year remain unchanged and we remain confident in achieving our medium-term financial plans."

Strategic highlights

UK Packaged

International Packaged

Out of Home

Operations

Financial highlights

Outlook

References

1 Excluding exceptional items

2 Free Cash Flow is the net increase in cash and cash equivalents before acquisition funding and dividends

3 Adjusted return on capital employed is the operating profit (excluding exceptional items) divided by the average period-end capital employed

4 Return on capital employed is the operating profit divided by the average period-end capital employed

5 Current market expectations refers to Group compiled market consensus for FY 2026 Adjusted PBT of £35.1m at27 July 2026

Investor and analyst presentation

Andrew Milne, CEO and Matthew Rothwell, CFO, will provide a live presentation at 10:45am BST today for analysts and investors which can be accessed here: https://b.link/NICL_HY26. This will be available for playback on the Company's website after the event.  

Contacts

Notes to Editors

Established in 1908, Nichols operates within the resilient soft drinks category and owns or licenses several brands. Nichols is geographically and operationally diversified, operating across three routes to market of UK Packaged, International Packaged and Out of Home.

In the UK, Nichols operates across five soft drinks sub-categories: squash, flavoured carbonates, fruit drinks, energy and flavoured water. Nichols' portfolio includes the iconic Vimto brand plus a growing portfolio of licensed brands including Levi Roots, ICEE, Myprotein and Sunkist.

Under its asset-light model, Vimto is prominent in areas such as the Middle East and Africa and is enjoyed in over 60 countries worldwide.

For more information, visit the website: https://www.nicholsplc.co.uk/

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

Executive Review

Overview

I am pleased to report another Period of strategic and financial progress for Nichols in the first half of 2026, resulting in good revenue growth, continued profit progression and strong cash generation in line with the Board's expectations. This performance reflects the continued execution of our growth strategy across each of our routes to market. Whilst geopolitical uncertainty remains, we are pleased to have continued to deliver a strong performance, benefitting from the strength of our customer relationships, portfolio of brands and diversified business model. On behalf of the Board, I would like to thank our colleagues, customers and business partners for their continued contribution during the Period.

During the first six months of the year, we continued to make good progress against the strategic priorities and medium-term financial ambitions outlined at our Capital Markets Day in November 2024. Within our Packaged business, we delivered growth across both our UK and International operations. In Africa, we delivered outstanding growth supported by increased distribution, strong demand and continued investment, whilst in the UK we continued to leverage momentum within Carbonates and Energy, and benefit from our focus on new product innovation.

Within Out of Home, we have remained resolutely focused on profitable growth and long-term value creation, simplifying the operating model, improving commercial effectiveness and achieving new account wins.

Following the successful implementation of our ERP platform in 2025, our attention has now turned to benefits realisation. During the Period, we continued to progress a number of strategic initiatives aimed at enhancing operational efficiency, strengthening business capabilities and supporting the Group's future growth ambitions.

Summary Financial Performance

Group Revenue increased by 4.7% to £89.5m (H1 2025: £85.5m), reflecting growth across all three routes to market, with particularly strong performance in Africa and continued momentum from innovation within UK Packaged.

Gross margin remained resilient at 43.9% (H1 2025: 44.1%), with procurement initiatives and operational efficiencies helping to mitigate inflationary cost pressures. Gross profit increased by £1.6m to £39.3m (H1 2025: £37.7m).

Adjusted Operating Profit increased by 3.7% to £14.1m (H1 2025: £13.6m), with higher gross profit and distribution efficiencies supporting continued investment in our future growth. Adjusted Operating Margin remained robust at 15.8% (H1 2025: 15.9%).

Adjusted Profit before Tax increased by 2.7% to £15.0m (H1 2025: £14.6m). Net interest income reduced slightly to £0.9m (H1 2025: £1.0m) reflecting lower interest rates. Adjusted Profit before Tax margin remained strong at 16.8% (H1 2025: 17.1%). The Group's medium-term ambition, as outlined at our 2024 Capital Markets Day, remains the delivery of a 20% Profit before Tax margin.

No exceptional costs were recognised in the Period (H1 2025: £3.2m). Operating Profit increased 35.6% to £14.1m (H1 2025: £10.4m). With the ERP programme complete, reported PBT increased 31.6% to £15.0m.

Adjusted earnings per share increased to 30.30p (H1 2025: 29.90p), whilst basic earnings per share increased over 30% to 30.30p (H1 2025: 23.33p) reflecting a first half with no exceptionals. The estimated tax rate for the Period was 26.1% (H1 2025: 25.3%).

We have continued our strong track record of cash generation, with Cash Generated from Operating Activities increasing to £21.9m (H1 2025: £17.6m), representing a record first half operating cash flow performance. The working capital outflow we reported at the full year reversed in full, as anticipated. Capital expenditure during the Period was £0.3m (H1 2025: £0.2m).

Cash and Cash Equivalents increased by £10.5m during the Period to £66.2m at 30 June 2026 (H1 2025: £61.6m; FY 2025: £55.7m), providing significant flexibility to support the Group's growth strategy and capital allocation priorities.

Adjusted Return on Capital Employed was 27.9% (H1 2025: 30.4%), continuing to demonstrate the strength of the Group's asset-light operating model and disciplined approach to capital allocation.

Dividend and Capital Allocation

Following the revised Group Dividend and Capital Allocation Policy announced in March 2026, Nichols has enhanced its dividend cover from approximately 2.0x to 1.5x adjusted earnings. This reflects the strength of the Group's balance sheet, cash generation and confidence in its future prospects, as well as its ongoing commitment to delivering attractive shareholder returns. The updated policy balances continued investment in organic growth opportunities with the return of surplus cash to shareholders, whilst retaining M&A optionality.

Accordingly, the Board is pleased to declare an interim ordinary dividend of 20.2p per share (H1 2025: 15.0p), an increase of 34.7%, payable on 11 September 2026 to shareholders on the register at 7 August 2026. The ex-dividend date is 6 August 2026.

Strategy

Execution of the growth strategy outlined at our Capital Markets Day in November 2024 continues to progress well and in-line with expectations. We remain focused on accelerating growth across our Packaged business through innovation, increased distribution, geographic expansion and targeted investments, whilst continuing to enhance profitability and returns within Out of Home.

Alongside our organic growth priorities, we will continue to evaluate selective acquisition opportunities that complement our strategic objectives and provide exposure to attractive growth markets and categories that the Vimto brand cannot reach.

Supported by our diversified operating model, strong brands, leading market positions and robust financial position, we remain well placed to continue delivering sustainable growth and make further progress towards our medium-term financial ambitions.

Business Performance

Packaged Business Overview

Overall Packaged revenue increased by 5.6% to £70.2m (H1 2025: £66.5m), with growth delivered across both UK and International markets. Packaged operating profit increased by £1.9m to £21.2m (H1 2025: £19.3m), reflecting strong growth in Africa, continued progress in the UK and the benefits of operating leverage. Operating margin increased to 30.2% (H1 2025: 29.1%).

International Packaged

International Packaged continues to deliver strong growth, with revenue increasing by 12.8% to £22.0m (H1 2025: £19.5m). Our focus remains on building a broader-based, higher-margin international business through expanding our local production footprint, geographic expansion, increased distribution and the continued development of our route-to-market model.

Revenue in Africa increased by 17.2% to £16.1m (H1 2025: £13.7m), reflecting increased distribution, continued investment in our brands and strong demand. The phased transition to a high-margin concentrate model continues to progress in-line with expectations, driving speed to market and product availability. With Phase 1 in Senegal having been successfully implemented, Phase 2 in Ivory Coast is ongoing and expected to be complete this year. Providing margin, operational and ESG related benefits, the rollout of this model remains an important element of our medium-term growth strategy.

Revenue in the Middle East increased 6.3% to £1.7m (H1 2025: £1.6m), benefiting from a successful Ramadan trading period. We continue to monitor the geopolitical environment closely, although trading has remained resilient throughout the Period. Shipments during H2 ahead of the 2027 Ramadan are expected to ship slightly earlier than the base plan to provide additional contingency.

Revenue across Rest of World markets, including Europe, North America and Asia, increased to £4.2m (H1 2025: £4.1m). We expect further progress during the second half of the year.

UK Packaged (UKP)

Revenue in UK Packaged increased by 2.3% to £48.1m (H1 2025: £47.0m), supported by innovation, distribution gains and growth in key categories including Energy and Carbonates.

Continued innovation within the Vimto Energy range, including new flavours and pack formats, together with growth across the core portfolio, contributed to a positive performance during the Period. In July 2026, we were pleased to announce the launch of Myprotein Protein Water which will be available from September, expanding our successful partnership with THG while diversifying our UK Packaged portfolio and providing exposure to the high-growth Health and Wellness category.

We will continue to prioritise innovation and distribution gains during the second half, supported by strategic marketing investments including the return of the Love the Taste campaign.

Out of Home

Out of Home delivered further progress during the first half, with revenue growing by 1.6% to £19.3m (H1 2025: £19.0m) and a continued focus on profitable growth and operational simplicity.

Following the planned exit from the Starslush brand last year, the Group's slush business is now focused on the ICEE brand within the cinema channel. A favourable film release schedule supported growth in cinema during the Period. Out of Home also delivered distribution wins within dispense including Rudy's Pizzerias.

Operating profit was £2.5m (H1 2025: £3.1m), reflecting a change in sales mix and certain one-off costs incurred during the Period. Operating margin was 13.1% (H1 2025: 16.5%) and is expected to improve during the second half of the year.

Central overheads

Central overheads increased to £9.6m (H1 2025: £8.8m), principally reflecting increased IT and systems support costs following the implementation of the Group's ERP platform. The prior period also benefited from a one-off insurance receipt which did not recur.

As anticipated, ongoing IT expenditure has increased following the ERP implementation in 2025. This investment supports a number of strategic initiatives across the Group and is expected to enhance operational efficiency, strengthen controls and support future growth.

Board

On 13 April 2026, Matthew Rothwell was appointed to the Board as Chief Financial Officer. Matthew brings significant financial, commercial, M&A and capital markets experience from a number of UK listed consumer businesses and has integrated quickly into the Group. The Board looks forward to benefiting from his contributions as Nichols continues to execute its growth strategy and medium-term financial ambitions.

Outlook

In the first half of 2026, Nichols delivered further strategic and financial progress in line with the Board's expectations, leveraging the strength of our diversified business model, exciting portfolio of brands, strong cash generation and continued International growth. Whilst the Board remains mindful of ongoing geopolitical uncertainty in the Middle East, wider macroeconomic conditions and the future implementation of the Deposit Return Scheme, we remain confident in the strength and resilience of the business as well as the growth opportunities available to the Group.

The Board remains confident in Nichols' ability to deliver further progress during the second half of the year and expects a full year performance¹ in line with current market expectations², and continues to execute its medium-term financial ambitions as outlined at our Capital Markets Day in November 2024.

Principal Risks and Uncertainties

The Board has considered the principal risks and uncertainties facing the Group for the remaining six months of the financial year.

The Directors have concluded that the principal risks and uncertainties facing the Group have not materially changed from those set out on pages 63 to 69 of the Nichols plc Annual Report and Accounts 2025. These include risks relating to:

The Board continues to monitor these risks closely and considers that appropriate mitigation plans remain in place.

1 Excluding exceptional items.

2 FY26 expectations refers to Group compiled market consensus for FY 2026 Adjusted PBT of £35.1m at 27 July 2026.

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CASH FLOWS

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Treasury shares used for share option exercises are held within retained earnings.

NOTES

1.   Basis of Preparation

The financial information set out in this Interim Report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2025, prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 have been filed with the Registrar of Companies. The Auditor's Report on those financial statements was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

These condensed consolidated interim financial statements for the half year reporting Period ended 30 June 2026 have been prepared in accordance with IAS 34 Interim financial reporting and also in accordance with the measurement and recognition principles of UK adopted international accounting standards. The Interim Report has not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

The interim financial statements were authorised for issue by the Board of Directors on 28 July 2026.

2.   Going Concern

In assessing the appropriateness of adopting the going concern basis in preparing the Interim Report and Financial Statements, the Directors have considered the current financial position of the Group, its principal risks and uncertainties. The review performed considers severe but plausible downside scenarios that could reasonably arise within the Period as well as a stress-test model.

Our modelling has sensitised the impacts of ongoing geopolitical uncertainty, in particular their impact on global supply chains and macroeconomic inflationary factors. Alternative scenarios, including the potential impact of key principal risks from a financial and operational perspective, have been modelled with the resulting implications considered. In all cases, the business model remained robust. The Group's diversified business model and strong balance sheet provide resilience against these factors and the other principal risks that the Group is exposed to. At 30 June 2026 the Group had cash and cash equivalents of £66.2m with no external bank borrowings.

On the basis of these reviews, the Directors consider the Group has adequate resources to continue in operational existence for the foreseeable future (being at least one year following the date of approval of the Interim Report and Financial Statements) and, accordingly, consider it appropriate to adopt the going concern basis in preparing the financial statements.