Nichols PLC on Wednesday said it performed well in 2023, thanks to a diversified business model, while saying it is ‘well-positioned’ to deliver on its strategic plans and ‘sustainable shareholder returns’ in 2024.
Revenue for the Merseyside, England-based soft drink manufacturer increased 3.5% to £170.7 million for the 12 months ended December 31 from £164.9 million year-on-year.
International sales were up 17%, while the group expects to report an adjusted pretax profit ‘slightly above’ the £25.4 million market expectation. The group recorded an adjusted pretax profit of £25.0 million in 2022.
As of December 31, Nichols held £67.0 million in cash and cash equivalents, up 19% from £56.3 million.
Nichols said that it has ‘largely maintained’ its gross margin despite inflationary pressures, allowing it to increase investment in the group’s long-term strategic development.
The company said that it is seeing benefits from the restructuring of its Out of Home business ‘earlier than initially anticipated’. In line with expectations, revenue from OoH continued to decline as Nichols exited from unprofitable accounts, but the company believes it will be able to ‘contribute positively’ to the group during 2024.
Looking ahead, Nichols is confident that it can deliver both its strategic plans and ‘sustainable shareholder returns’ thanks to its diversified business model.
Chief Executive Officer Andrew Milne said: ‘This is a great testament to the strength of the group’s business model and brands, with our established UK position complemented by strong momentum internationally. Looking ahead into 2024 we remain focused on continuing to implement our strategic plans and delivering further progress against our long term ambitions.’
The group also announced the appointment of Matthew Nichols as non-executive director, effective immediately. As a member of the Nichols family, his appointment was part of a relationship agreement between the company and the Nichols family entitling the latter to two non-executive board positions. Nichols formerly served as commercial international director and as a member of the company’s senior leadership team.
Nichols shares were up 1.1% at 1,142.40 pence each in London on Wednesday morning.
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