Nichols' out-of-home sales decline offsets Vimto outperformance

For the nine months ended 30 September, Nichols said that total group revenue had decreased by 16.5% year-on-year to £91.7m, despite seeing Vimto achieve growth of 5.8% in value terms across the UK during the period.

Across Nichols' international markets, strong momentum reported in its interim results continued, particularly in Africa, where revenues had increased by 10.5% year-to-date.

The AIM-listed group stated trading since the half had remained "very challenging" in the out-of-home route-to-market, with third-quarter revenues slumping 45.2% as multiple customers' outlets remained closed or operated with significantly reduced footfall.

Looking forward, Nichols stated that given the ongoing uncertainty regarding the Covid-19 pandemic, it was not willing to provide financial guidance for the 2021 trading year. However, Nichols did note that it currently expects 2020 adjusted pre-tax profits to be between £11.0m and £13.0m.

Chairman John Nichols said: "Whilst recognising the current and near-term impact of the pandemic on the soft drinks market, the Board continues to believe that Nichols, underpinned by the strength of the Vimto brand and the group's diversified business model, remains well placed to deliver its long-term strategic ambitions."

As of 0850 GMT, Nichols shares were down 3.33% at 1,160.09p.