Nichols full year in line, but UK market still challenging

Nichols said trading for the year ended 31 December was in line with the previous year and management’s expectations.

The soft drinks maker said group revenue for the year came in at £109.3m and while the UK market has remained challenging, its international sales grew 1.5% compared to 2014 and 3.9% at constant currency.

Reported export sales totalled £24.4m, which was up £0.4m from the previous year despite difficulties in shipping to Yemen due to the conflict there.

UK sales came to £84.9m, down 0.3% from 2014 but slightly ahead of the total UK soft drinks market performance which fell 0.7% according to Nielsen data.

Nichols said it maintained its value over volume strategy within the UK for the Vimto brand, leading to 4% growth in the Still category and a 7% drop in the promotionally-led Carbonate category.

“Group 2015 sales performance is per our expectations and whilst the UK market remains challenging, our international business has continued to deliver good growth.

“We expect full year profit and earnings per share to be ahead of the prior year and in line with market expectations.”

At 0931 GMT, Nichols shares were up 0.8% to 1,428p.