Merseyside Vimto maker Nichols says its medium-term ambitions for the business are to push revenues above £220m and pre-tax profits closer to £50m. Tony McDonough reports
Vimto is sold in more than 60 countries around the world
Soft drinks company Nichols, whose most famous brand is Vimto, has revealed ambitions for big rises in both sales and pre-tax profits.
For 2023, Newton-le-Willows-based Nichols reported full-year revenues of £170.7m and pre-tax profits of £24.3m. It took that momentum into 2024, reporting revenues of £84m and pre-tax profits of £14.5m for the six months to June 30.
That profit figure was 18% higher than the same period last year and stock market-listed Nichols announced a bumper £20m dividend for its shareholders.
In a trading update on Wednesday, the company said trading for the current year remained in line with management expectations. Market expectations for the full year are revenues of £172m.
But Nichols says its medium-term ambition is to grow annual revenues to at least £225m and deliver a pre-tax profit of £45m.
Nichols sells the famous Vimto brand in more than 60 countries around the world. It is also behind the SLUSH PUPPiE Feel Good, Starslush, ICEE, Levi Roots and Sunkist soft drink brands.
Vimto is particularly popular in the Muslim world during the holy month of Ramadan. It provides a quick boost of sugar-filled energy following the dawn ’til dusk fast.
In the latest trading update the firm says it aims to create shareholder value by “building a high-margin, highly cash-generative, diversified business, leveraging the strength of the differentiated Vimto brand”.
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Delivery of the strategy and financial ambitions, it adds, are “underpinned by a strong balance sheet, and a disciplined capital allocation framework focused on enhancing shareholder value”.
Chief executive Andrew Milne said: “The delivery of our medium-term financial ambition for creating shareholder value will be underpinned by our proven approach to innovation, focus on growing distribution in existing markets, expanding into new geographies, and investing in our brands.
“We are very excited by and confident in the growth opportunities that lie ahead.”
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