2025 INTERIM RESULTS
Continued delivery against strategic plan.
FY25 Adjusted PBT expected to be in line with market expectations.
Nichols plc, the diversified soft drinks Group, is pleased to announce its unaudited Interim Results for the half year ended 30 June 2025 (the ‘Period’), with Adjusted PBT during the Period continuing to progress in line with expectations, reflecting the ongoing delivery of the Group’s strategic priorities.
Key Financials
| Half year ended 30 June 2025 | Half year ended 30 June 2024 | Movement | |
| Group Revenue | £85.5m | £84.0m | +1.8% |
| Adjusted Operating Profit1 | £13.6m | £13.1m | +4.1% |
| Adjusted Operating Profit Margin1 | 15.9% | 15.6% | +30bps |
| Adjusted Profit Before Tax (PBT)1 | £14.6m | £14.5m | +0.8% |
| Adjusted PBT Margin1 | 17.1% | 17.3% | (20bps) |
| Adjusted EBITDA2 | £14.3m | £14.1m | +1.1% |
| Operating Profit | £10.4m | £10.4m | +0.3% |
| Operating Profit Margin | 12.2% | 12.4% | (20bps) |
| Profit Before Tax (PBT) | £11.4m | £11.8m | (3.3%) |
| PBT Margin | 13.4% | 14.1% | (70bps) |
| EBITDA3 | £11.1m | £11.4m | (2.9%) |
| Adjusted Earnings per Share (basic)1 | 29.90p | 29.87p | +0.1% |
| Earnings per Share (basic) | 23.33p | 24.29p | (4.0%) |
| Cash and Cash Equivalents | £61.6m | £70.3m | (£8.7m) |
| Free cash flow4 | £14.2m | £9.0m | £5.2m |
| Adjusted Return on capital employed5 | 30.4% | 27.1% | +330bps |
| Return on capital employed6 | 22.7% | 23.3% | (60bps) |
| Interim Ordinary Dividend per share | 15.0p | 14.9p | +0.7% |
| Special Dividend per share | – | 54.8p | – |
Andrew Milne, Chief Executive Officer of Nichols, commented:
“We are pleased to have delivered further progress against our growth strategy in the first half of the year. Our UK Packaged business performed well, driven by distribution gains and exciting product innovation, including our new functional squash, Wonderfuel. In Africa, the strategic transition to a concentrate model remains on track and continues to drive higher-margin growth. The Group also expanded its footprint across several other key international markets, including Malaysia where Vimto is now listed across all major retailers nationwide. Internally, we successfully launched our new ERP system, a key milestone in our business transformation programme, and are now focused on realising the benefits of this investment in supporting our long-term growth ambitions. I would like to thank all our teams for their dedication in delivering this important project while maintaining strong momentum across our growth initiatives.
Leveraging the strength of our brand portfolio, our geographically diverse business model, and a robust balance sheet, we remain confident that Nichols is well-positioned to deliver growth in line with our strategy and medium-term financial objectives.”
Financial highlights
- Group Revenue +1.8% at £85.5m (H1 2024: £84.0m)
- UK Packaged sales increased by +3.7% at £47.0m (H1 2024: £45.4m) with encouraging volume growth from core products and innovation
- In line with expectations, International sales were down -2.5% at £19.5m (H1 2024: £20.0m) due to the shift to the margin enhancing concentrate model in Africa and phasing of Middle East shipments given earlier timing of Ramadan. Strong progress continues in Africa delivering +16.9% revenue growth (H1 2024: -10.1%)
- Out of Home +1.9% at £19.0m (H1 2024: £18.6m) in line with expectations. Further simplification of our operating model and profit focus led to the exit from Starslush business
- Gross margin maintained at 44.1% (H1 2024: 44.0%)
- Gross profit increased by £0.7m reflecting UK and International volume growth
- UK margin stable following increased promotional spend on new product innovation including Wonderfuel
- International margin increased with further implementation of concentrate model in West Africa
- Adjusted operating profit growth of +4.1% to £13.6m (H1 2024: £13.1m)
- Improved revenue and gross profit
- Continued focus on cost and investment in Operations and supply chain
- Adjusted operating profit margin increased to 15.9% (H1 2024: 15.6%)
- Adjusted profit before tax growth of +0.8% to £14.6m (H1 2024 £14.5m)
- Improved operating profit and lower interest income
- Adjusted profit before tax margin of 17.1% (H1 2024: 17.3%)
- Exceptional costs of £3.2m (H1 2024: £2.7m)
- Further investment in the Group’s business change programme and new ERP system
- Strong net cash and cash equivalents at £61.6m (H1 2024: £70.3m, 31 December 2024: £53.7m)
- Free cash flow of £14.2m (H1 2024: £9.0m) driven by lower working capital requirements
- Reduced net interest income of £1.0m (H1 2024: £1.4m) following £20m special dividend paid in H2 2024
- Robust balance sheet allows for on-going delivery against stated growth objectives and capital allocation priorities
- Interim dividend of 15.0p (H1 2024: 14.9p with additional Special dividend of 54.8p per share)
Strategic highlights
UK Packaged
- Market share growth in the UK driven by both ready to drink (RTD) and Energy categories
- Encouraging volume growth from both core business and new product innovation
International Packaged
- Continued strong growth in Africa driven by additional investment and implementation of higher margin concentrate model
- Product innovation continues in Middle East to grow share in established markets
- Malaysia launch supporting strategic geographic expansion plan
Out of Home (OoH)
- Further simplification of model with planned exit from Starslush brand
- Maintained profitability, with OoH performance continuing to support the Group’s overall growth strategy
Operations
- Successful launch of SAP ERP system to improve the efficiency and effectiveness of Group operations
- Further investment in Supply Chain in line with strategic growth ambitions
Outlook
- The Board remains confident in Nichols’ ability to deliver further strategic progress in the second half, in line with the Group’s medium-term financial ambitions
- Full year adjusted profit before tax is expected to be in line with current market expectations7
References
1 Excluding exceptional items
2 Adjusted EBITDA is the adjusted profit before tax, interest, depreciation and amortisation
3 EBITDA is the profit before tax, interest, depreciation and amortisation
4 Free Cash Flow is the net increase in cash and cash equivalents before acquisition funding and dividends
5 Adjusted return on capital employed is the operating profit (excluding exceptional items) divided by the average period-end capital employed
6 Return on capital employed is the operating profit divided by the average period-end capital employed
7 Current market expectations refers to Group compiled market consensus for FY 2025 Adjusted PBT of £33.1m at 30 July 2025