Nichols (LSE:NICL) reported revenue of £175.0 million for the year ended 31 December 2025, representing growth of 1.3%, with adjusted profit before tax expected to be in line with market forecasts. Performance reflected continued progress in shifting the business towards a higher-margin concentrate-led model in Africa, alongside the exit from lower-margin Out of Home activities.
In the UK, Packaged revenue increased 2.6%, supported by strong core brand performance and ongoing innovation. International Packaged revenue was flat on a reported basis but rose 2% on a like-for-like basis, with Africa delivering 10% like-for-like growth. Trading in the Middle East was impacted by shipment timing related to an earlier Ramadan, temporarily weighing on reported performance.
Gross margins were maintained despite inflationary cost pressures, underpinned by tight cost control and the successful completion of a new ERP system. The group ended the year with a strengthened balance sheet and cash of £55.8 million, and reiterated its commitment to a progressive dividend policy. The appointment of a new chief financial officer in April was also highlighted as a positive corporate development.
Looking ahead, management emphasised the strategic advantages of Nichols’ asset-light and geographically diversified model, supported by continued investment in innovation and expansion. The group signalled confidence in its medium-term growth strategy and its ability to generate shareholder value through 2026 and beyond, although the outlook remains tempered by bearish technical indicators and a valuation that suggests limited near-term upside.
More about Nichols
Nichols plc is a UK-based diversified soft drinks business operating an asset-light model across UK Packaged, International Packaged and Out of Home channels. The group competes across categories including squash, flavoured carbonates, fruit drinks, energy and flavoured water, led by its flagship Vimto brand and a portfolio of licensed brands such as Levi Roots, ICEE, SLUSH PUPPiE and Sunkist, with a strong presence in the UK and distribution in more than 60 countries, particularly across the Middle East and Africa.
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