Nichols (LSE:NICL) reported continued growth during the first half of 2026, with group revenue rising 4.7% to £89.5 million and adjusted operating profit increasing 3.7% to £14.1 million. Revenue growth was delivered across all business divisions, while statutory operating profit jumped more than 35% as exceptional ERP-related costs recorded in the previous year did not recur. Strong gross margins and record operating cash flow also helped lift cash and cash equivalents to £66.2 million.
The UK Packaged division generated value growth through wider distribution, product innovation and stronger sales in the energy drinks and carbonates categories. International Packaged recorded double-digit revenue growth, supported by robust demand across Africa and a successful Ramadan trading period in the Middle East. Meanwhile, the Out of Home business achieved modest revenue growth through profitable customer wins in premium food venues and cinemas. The company also began benefiting from efficiency improvements linked to its ERP system rollout and the consolidation of its UK distribution network.
Reflecting its strong cash generation, Nichols increased its interim dividend by 34.7% to 20.2p per share after introducing a revised dividend policy that reduces dividend cover to 1.5 times adjusted earnings. The company also expanded its presence in the fast-growing functional beverages market through the launch of Myprotein Clear Whey Protein Water in partnership with THG, reinforcing its focus on innovation and adjacent growth opportunities.
Management said the business remains well positioned for sustainable long-term growth, supported by improving international margins as concentrate production shifts closer to customers in Africa and by a strong balance sheet that provides flexibility for future investment. The board left full-year guidance unchanged and reiterated confidence in delivering its medium-term financial objectives despite ongoing geopolitical and macroeconomic uncertainty.
Nichols’ outlook continues to be supported by strong profitability, healthy margins and a balance sheet with minimal debt. While technical indicators remain weaker, reflecting a broader downward share price trend and negative momentum, the company’s attractive valuation, solid dividend yield and recent operational progress provide positive support for the investment case.
About Nichols
Nichols plc is a diversified soft drinks company founded in 1908 and best known for its flagship Vimto brand. The group operates across three core divisions—UK Packaged, International Packaged and Out of Home—offering a broad portfolio of carbonated soft drinks, energy beverages, dispense solutions and functional drinks. Its products are sold across a wide range of international markets, with particularly strong positions in Africa and the Middle East.
The company continues to focus on expanding its branded drinks portfolio through innovation, strategic partnerships and wider distribution while increasing its exposure to faster-growing categories such as health, wellness and functional beverages. Supported by strong cash generation and a robust balance sheet, Nichols aims to deliver sustainable long-term growth while continuing to invest in its brands and enhance shareholder returns.
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