Nichols plc – 2024 Preliminary Results

2024 PRELIMINARY RESULTS

Strong performance delivered in line with growth strategy and medium-term financial ambitions 

Nichols plc (‘Nichols’, the ‘Company’ or the ‘Group’), the diversified soft drinks group, announces its Preliminary Results for the year ended 31 December 2024 (the ‘Period’).

	Year ended 31st December 2024	Year ended 31st December 2023	Movement
Group Revenue	£172.8m	£170.7m	+1.2%
Adjusted Operating Profit1	£28.9m	£25.2m	+14.6%
Operating Profit	£21.5m	£22.3m	(3.6%)
Adjusted Profit Before Tax (PBT)1	£31.4m	£27.2m	+15.6%
Profit Before Tax (PBT)	£24.0m	£24.3m	(0.9%)
Adjusted PBT Margin1	18.2%	15.9%	+2.3ppts
PBT Margin	13.9%	14.2%	(0.3ppts)
Adjusted EBITDA2	£30.8m	£27.6m	11.7%
EBITDA3	£23.5m	£24.7m	(4.3%)
Adjusted earnings per share (basic)	64.02p	56.41p	+13.5%
Earnings per share (basic)	48.84p	50.34p	(3.0%)
Cash & cash equivalents	£53.7m	£67.0m	(19.9%)
Free Cash Flow4 (FCF)	£17.8m	£20.9m	(14.9%)
Adjusted Return on Capital Employed5	31.0%	26.3%	+4.7ppts
Return on Capital Employed6	23.1%	23.3%	(0.2ppts)
Proposed Final Dividend	17.1p	15.6p	+9.6%
Total Dividend	32.0p	28.2p	+13.4%
Special Dividend	54.8p	–	–

Financial Highlights

• Group Revenue slightly higher than last year at £172.8m (2023: £170.7m), reflecting the shift in International to a lower revenue but margin enhanced concentrate model across several African markets
  • Overall Packaged revenue increased by +4.4%, with UK Packaged sales increasing by +6.3%, largely driven by innovation and distribution gains, while International Packaged revenue increased by +0.8%, as expected, due to the shift to a concentrate model.
  • Out of Home (“OoH”) revenue decreased by -8.2% in line with the Group’s expectations following the strategic exit from unprofitable accounts delivering significant improvement in profitability.
• Gross Margin improvement to 45.7% (2023: 42.3%)
  • UK Packaged gross margin increased despite inflationary pressures due to revenue growth strategies.
  • Increased weighting of higher margin concentrate sales in International within our Africa and Middle East business units.
• Continued focus on cost management resulted in Adjusted Operating Profit increasing by 14.6% to £28.9m, with an enhanced Adjusted Operating Margin of 16.7% (2023: 14.8%) and Adjusted Profit before Tax rising by 15.6% to £31.4m.
• Exceptional items of £7.4m (2023: £2.9m) reflecting the investment made in the Business Change Programme and Systems Development.
• Free Cash Flow of £17.8m (2023: £20.9m) in cash and cash equivalents of £53.7m (2023: £67.0m)
  • Dividend payments of £31.2m (2023: £10.2m), which included a special dividend of £20.0m.
  • Investment in new Enterprise Resource Planning (ERP) system of £7.6m (2023: £1.7m).
• Final dividend proposed at 17.1p (2023: 15.6p). Total normal dividend of 32.0p (2023: 28.2p).
• Progress in line with medium-term ambitions.

Strategic and Operational Highlights

• Sustained growth in the UK Packaged division achieving the highest ever Vimto Retail Sales Value (RSV) of £121.2m driven by new product innovation, increased marketing investment and distribution gains.
• The International Packaged division continued to deliver excellent results underpinned by:
  • Successful volume growth in our core markets in the Middle East during our 101st Ramadan.
  • New concentrate model in West Africa bringing production closer to the end consumer and improving margins.
  • Strategic geographic expansion into Malaysia in Q4
• Progress against ESG strategy (‘Happier Future’)
  • ‘A’ rating from Integrum ESG; a leading industry assessor of ESG credentials and achievements.
  • Moved to sustainably sourced 51% rPET in all our UK Packaged products.

Current Trading and Outlook

• We anticipate a further strengthening of performance across 2025.
• Trading to date has been positive and is in line with management expectations.
• Nichols remains confident in its ability to deliver further strategic progress and a continued strong financial performance, in line with the Group’s medium-term financial ambitions.

Andrew Milne, Chief Executive Officer of Nichols, commented:

“Nichols delivered another strong performance in 2024, delivering double digit PBT growth and improved gross margin as we continued to successfully execute our growth strategy across each of our routes to market. In the UK, Vimto reached its highest ever retail sales value, demonstrating the enduring appeal of our iconic brand, driven by expanded distribution, new product innovation and our biggest ever marketing campaign, “Love the Taste”. A strong performance in our International business was driven by volume growth in the Middle East during our 101st Ramadan in the region, as well as significant strategic progress across Africa as we transitioned to a margin-enhancing concentrate model in several markets.

At our Capital Markets Day in November, we outlined our medium-term financial ambitions and a clear roadmap for growth. We operate in a resilient and growing category and are well positioned to capitalise on the significant opportunities across both our UK and international markets, leveraging the strength of the Vimto brand. Underpinned by our diversified business model, strong brand portfolio, and solid financial position, I remain confident in our ability to drive high-margin, cash-generative growth and deliver long-term value for our shareholders.”