Vimto owner sees ‘encouraging’ growth despite ‘significant’ inflationary pressures

Nichols, the parent company of Vimto, has said it is mindful of inflationary pressures as it reported a rise in both revenues and profits.

For the six months ended 30 June, revenue soared by 19.1% to £80.2 million from £67.4 million a year prior.

The company, which owns Slush Puppie and Sunkist, also reported 17% increase in pretax profit to £10.1 million from £8.6 million as its Vimto arm continued to outperform the broader squash market.

UK revenues increased by 29.3% to £62.6m with the biggest boost coming from the ‘out of home market’, which saw a 131.9% rise as the sector recovered from the pandemic.

READ MORE: Heinz profits fall 10.9% amid inflationary pressures

During the six-month period international revenues fell by 7.2% to £17.6m as various markets were impacted by supply chain challenges, especially in the first quarter of 2022.

As a result, the soft drinks giant’s expectations for the full year remains unchanged. The board expects adjusted pretax profit for the year to be £25.5 million.

“After some disruption to shipments affecting our International business in Q1, I am pleased to report a recovery in Q2 which has so far continued into the second half of the year,” non-executive chairman John Nichols said.

“Whilst the group is not immune to the significant and accelerating inflationary pressures impacting the consumer and the soft drinks market, we have taken swift mitigating actions where possible and the group’s adjusted PBT expectations for the full year remain unchanged.

“The board remains mindful of the potential earnings impact of continued inflation into FY23 and beyond. We have a long-term track record of growth, a proven, diversified strategy, and a quality range of brands,” he added.

“All of this is underpinned by a strong balance sheet. As a result, the board remains confident that the group is well positioned to deliver its long-term growth plans.”

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