UK: Vimto sales boost Nichols H1 profits
Nichols' growth was driven by distribution gains, along with “strong growth” of the Vimto brand
Nichols has reported an increase in first-half profits driven by sales growth for its Vimto soft drinks brand.
For the six months to the end of June, profits increased to GBP4.3m (US$6.8m) from GBP3.2m in the prior year, the UK-based firm said today (4 August).
Sales were up by 17.6% on last year to GBP44.2m, while operating profits rose to GBP6m from GBP4m in the year-ago period.
The Vimto maker said that sales in its domestic market grew by 19.3% in the first-half, with sales of carbonated products growing by 20% and still drinks by 19%. Growth was driven by distribution gains, along with “strong growth” of the Vimto brand and the launch of Cherry Vimto in January, the firm said.
John Nichols, non-executive chairman, said: “We have continued to increase our market share and have again significantly outperformed the sector. I’m also pleased our very strong trading in the first-half was achieved despite tough comparatives, the prevailing economic uncertainties and an extremely competitive soft drinks sector.”
Nichols noted, however, that the soft drinks sector remains “extremely competitive”.
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