Vimto maker Nichols back FY guidance as interim profits rise

In the half year to 30 June, pre-tax profit increased 10.5% to £11.2m, on revenue of £85.5m, up 6.6% on the same period a year earlier.

Packaged revenues were up 10.4% to £64.5m, with a strong performance across all regions. Within this, the international packaged business performed particularly strongly, with revenues up 24.6% and all regions experiencing double-digit growth.

In Africa, revenues were up 26.1% to £13.1m, delivered through a combination of new and existing geographies. Middle East revenues in the period also improved, by 17.5%, with in-market volumes performing well through Vimto's typically strong trading period of Ramadan.

The company’s rest of world markets saw revenue growth of 29.8%, with the US and Europe continuing to perform well, building on increased brand awareness and strong in-market execution. UK packaged revenues were ahead 4.5% at £43.1m.

Chief executive Andrew Milne said: "We are pleased with our encouraging first half performance which again reflects the strength of the Vimto brand. Particularly pleasing is the growth in our core packaged business, and the continued accelerated momentum across our international markets with very strong performances in Africa, the Middle East and the rest of the world.

"The group achieved significant strategic progress during the period, particularly in relation to our Out of Home business where we are making positive changes to simplify operations and focus on the areas of greatest opportunity and profitability. We are on-track to deliver the material benefits of these changes from FY 2024. Meanwhile, we remain focused on accelerating growth in packaged, both in the UK and internationally, in line with our strategic plan."

While mindful of the ongoing impact of inflationary pressures on the consumer, Milne said the company expects adjusted pre-tax profit for FY2023 to be in line with market expectations of £25.2m.