Nichols (NICL ) expects full year profits to be ahead of the current market expectations as a result of strong trading in the year to date which saw group revenue rise by 17% to 107m.
In a trading statement released today, the diversified soft drinks group said group revenue for the period was ahead of the Board’s expectations, increasing by 17% year-on-year to £107m.
The Company’s Vimto brand has continued to deliver a strong performance across all of its markets. In the UK, Vimto brand value has increased by 4.5% YTD, according to Nielsen.
Meanwhile, in Africa, the Middle East, Europe and the US the brand has continued to see progress year-on-year, with International revenues increasing 36% versus the prior year.
The Company’s Out of Home (“OoH”) route to market continues to recover from the impact of the ongoing COVID-19 pandemic and has seen growth of 29% year-on-year.
Shares in Nichols were trading 8.44% higher this morning at 1,215p following the news.
In addition, the Company told investors that cash generation has continued to be ‘very positive’ in 2021 and despite the ongoing financial challenges posed by the pandemic, cash and cash equivalents at the end of the period were £55.6m (30 September 2020: £45.4m).
Although uncertainty remains regarding Q4 trading as a result of increasing Covid-19 infection rates in the UK, in light of the strong trading in the year to date the Board informed investors that it believes that pre-tax profit for FY21 will be ahead of the current market consensus.
The Board now anticipates that Adjusted PBT for FY21 will be in the range of £21m - £22m.
Whilst the Company’s revenue momentum is expected to continue into 2022, the outlook for the next financial year is adversely impacted by inflationary pressures including logistics, labour and materials, therefore profit expectations for 20224 remain unchanged, it noted.
The Group said it intends to provide its next trading update on 12 January 2022.Follow News & Updates from Nichols here: