Nichols Boosts Profitability as Vimto Delivers Record UK Sales

Nichols plc (LSE:NICL) reported a modest increase in group revenue for 2025, rising 1.3% to £175.1m, while profitability improved more sharply. Adjusted operating profit climbed 9.9% during the year as operating margins strengthened, supported by disciplined cost management and strategic changes across several business units.

The group benefited from record retail sales of its flagship Vimto in the UK Packaged division. International Packaged operations also performed strongly, helped by a transition to a higher-margin concentrate sales model in West Africa. Meanwhile, the company simplified its Out of Home segment and exited the lower-margin Starslush business as part of its efforts to streamline operations.

Operational improvements were further supported by the introduction of a new enterprise resource planning (ERP) system, which has begun delivering efficiency gains across the organisation. Strong financial performance enabled Nichols to increase its ordinary dividend, reflecting management’s confidence in the strength of the balance sheet and the group’s medium-term growth prospects.

The company’s outlook remains shaped by a combination of positive and challenging factors. Solid profitability and the appointment of a new chief financial officer represent supportive developments, while technical indicators currently show bearish momentum in the share price. Although the company maintains a stable financial position, it still faces pressure to accelerate revenue growth and strengthen cash flow generation.

More about Nichols

Nichols plc is a UK-based soft drinks group that operates an asset-light business model across three main channels: UK Packaged, International Packaged and Out of Home. The company’s portfolio is centred on the Vimto brand and also includes licensed beverages such as Levi Roots, ICEE, SLUSH PUPPiE and Sunkist. Its product range spans squash, flavoured carbonated drinks, fruit beverages, energy drinks and flavoured water, with a strong presence in markets across the Middle East and Africa.