News Column

Vimto maker Nichols sees big rise in profits

July 25, 2014


Soft drinks maker Nichols has posted an 11 per cent rise in first- half pre-tax profit, helped by a focus on high-margin products and cost cuts.

Nichols, which has been reducing its exposure to the heavily promoted carbonates sector to improve profitability, said adjusted pretax profit rose to pound(s)10 million in the six months to June 30 from pound(s)9 million a year earlier.

The Vimto company said its revenue rose three per cent to pound(s)56.6 million.

"The carbonates category continues to be very competitive as demonstrated by the frequent price promotions by Coke and Pepsi and therefore puts pressure on margins," finance director Tim Croston said.

The Coca-Cola Co and rival PepsiCo Inc have been struggling with declining soda sales in developed markets as consumers become more health conscious.

International sales, which account for about 21 per cent of total sales, were down by 12 per cent.

The positive trend seen in the UK in the first half is expected to continue through the second half.

Nichols raised its interim dividend to 7.1 pence per share from 6.32 pence last year.

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Source: Herald, The (Scotland)

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