Nichols first half profits rose as the Vimto brand achieved its highest ever UK annual retail sales value of £190m.

For the half year to 30 June, pre-tax profit rose 5.8% to £11.8m and as the soft drinks manufacturer now expects full-year profitability to be slightly ahead of current market expectations.

On an adjusted basis, profit before tax jumped 18% to £14.5m, while Nichols experienced strong market share growth in the UK, driven by the squash and carbonates categories.

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While group sales declined by 1.8% to £84m, UK packaged sales were up 5.3% to £45.4m, underpinned by volume growth of 4.9%, which Nichols said reflected product innovation, distribution gains and an increased marketing investment.

Nichols chief executive Andrew Milne said: “I am pleased to report further strategic progress in the first half. Our biggest ever UK promotional campaign was launched towards the end of the period, and we are confident this will support the continued growth of the Vimto brand over the summer.

“Whilst mindful of continued pressure on consumer spending, despite levels of inflation stabilising, our diversified business model and the enduring strength of the Vimto brand have enabled us to deliver a strong performance. As a result, we now expect full-year profitability to be slightly ahead of current market expectations and we remain confident that Nichols is well placed to deliver its strategic growth ambitions.”