Nichols reports decent rise in revenue and earnings

Soft drinks maker Nichols reported a 3.5% improvement in revenue in its preliminary results on Wednesday, to £147m.

The AIM-traded maker of Vimto-branded beverages said its operating profit was ahead 2.5% year-on-year for the 12 months ended 31 December, while its operating profit margin slipped slightly to 22.1% from 22.3%.

EBITDA was 9.5% higher at £37m, and profit before tax managed gains of 2.1% to £32.4m, although the company’s profit before tax margin was narrower at 22.1%, compared to 22.4% a year earlier.

Nichols reported earnings per share of 72.81p, up 5.2% over 2018, and declared a final dividend of 28p, which was 4.5% higher than a year earlier.

“I am pleased to report on a year of further progress during which Nichols achieved continued revenue growth in both our international and UK businesses,” said non-executive chairman John Nichols.

“As a result, the group delivered year-on-year increases in profit before tax and earnings per share and we are today proposing a final dividend of 28.0 pence per share, resulting in a 6.0% increase in the full year dividend.

“The group's performance demonstrates the strength of our diversified business model, which provides a strong platform to deliver continued growth.”

At 1421 GMT, shares in Nichols were up 0.65% at 1,389p.