Delivery of strategic initiatives drives strong profit growth in-line with expectations
Nichols plc (‘Nichols’, the ‘Company’ or the ‘Group’), the diversified soft drinks group, announces its Preliminary Results for the year ended 31 December 2025 (the ‘Period’).
| Year ended31 December 2025 | Year ended31 December 2024 | Movement | |
| Group Revenue | £175.1m | £172.8m | +1.3% |
| Adjusted Operating Profit1 | £31.7m | £28.9m | +9.9% |
| Operating Profit | £27.3m | £21.5m | +27.1% |
| Adjusted Profit Before Tax (PBT)1 | £33.6m | £31.4m | +7.0% |
| Profit Before Tax (PBT) | £29.2m | £24.0m | +21.5% |
| Adjusted PBT Margin1 | 19.2% | 18.2% | +1.0ppts |
| PBT Margin | 16.7% | 13.9% | +2.8ppts |
| Adjusted EBITDA 2 | £33.8m | £30.8m | +9.6% |
| EBITDA3 | £29.4m | £23.5m | +25.2% |
| Adjusted earnings per share (basic)1 | 67.53p | 64.02p | +5.5% |
| Earnings per share (basic) | 58.67p | 48.84p | +20.1% |
| Cash and cash equivalents | £55.7m | £53.7m | +3.8% |
| Free Cash Flow4 (FCF) | £13.8m | £17.8m | -£4.0m |
| Adjusted Return on Capital Employed5 | 34.1% | 31.0% | +3.1ppts |
| Return on Capital Employed6 | 29.4% | 23.1% | +6.3ppts |
| Proposed Final Dividend | 18.7p | 17.1p | +9.4% |
| Total Ordinary Dividend | 33.7p | 32.0p | +5.3% |
| Special Dividend | – | 54.8p | (54.8p) |
Financial highlights
– Group revenue 1.3% higher than last year at £175.1m (2024: £172.8m), driven by increased volumes in UK packaged and also reflecting the shift in International to a lower revenue but margin-enhanced concentrate model across several African markets and the exit of the low margin Starslush brand in H2
– Overall Packaged revenue increased by +1.8%, with UK Packaged (“UKP”) sales up by +3.1%, largely driven by innovation and distribution gains, and 1.5% growth in International on a like-for-like7 basis following the successful strategic shift to the concentrate model
– In-line with our strategy to focus on profitability, Out of Home (OoH) revenue was consistent year-on-year, despite the exit of the low margin Starslush business
– Gross margin remained strong at 46.1% (2024: 45.7%). UK Packaged gross margin increased despite inflationary pressures offset by a disciplined and robust focus on cost management, enhanced by the implementation of the new ERP system
– Increased weighting of higher margin concentrate sales in International
Packaged within our Africa business unit
– Adjusted operating profit increased by 9.9% to £31.7m, with an enhanced adjusted operating margin of 18.1% (2024: 16.7%) and adjusted profit before tax increased by 7.0% to £33.6m, reflecting disciplined cost management
– Free cash flow of £13.8m (2024: £17.8m) resulting in cash and cash equivalents of £55.7m (2024: £53.7m)
– Dividend payments of £11.7m (2024: £11.2m ordinary dividend and a special dividend of £20.0m)
o Investment in new Enterprise Resource Planning (ERP) system of £4.4m (2024: £7.6m)
– The reduction in free cash flow is driven by a timing difference in working capital, driven by phasing of year-end sales, which is expected to unwind in H1 2026
– Final ordinary dividend proposed at 18.7p (2024: 17.1p). Total ordinary dividend of 33.7p (2024: 32.0p)
Strategic and operational highlights
– Sustained growth in UK Packaged delivered the highest ever Vimto Retail Sales Value (RSV) of £129.1m, driven by new product innovation, market share gains across dilutes, energy and ready to drink (RTD) sub-categories.
– The International Packaged division continued to deliver excellent results underpinned by the new concentrate model in West Africa bringing production closer to the end consumer which is continuing to improve margins
– Further simplification of the OoH operating model, including the exit of the low margin Starslush brand
– Significant investment in a new ERP system, which was successfully launched in Q1 and is already delivering benefits/efficiencies across the business
– The brand licensing channel continues to grow, with an enhanced partnership with Myprotein and a new agreement with Applied Nutrition
Current trading and outlook
– Nichols continues to benefit from its diversified, asset-light business model, exciting portfolio of brands and strong balance sheet, and is well-positioned to deliver its medium-term growth strategy
– Trading so far during 2026 has been positive and in line with expectations
– The Board is committed to maintaining a strong balance sheet while prioritising growth in line with its medium-term ambitions and continuing to deliver attractive returns to shareholders. Nichols’ strong balance sheet, confidence in the outlook and good cash generation are reflected in the intention to reduce dividend cover to 1.5x during 2026.
Andrew Milne, Chief Executive Officer of Nichols, commented:
“As a result of the continued execution of our growth strategy, Nichols delivered another strong performance in 2025, delivering solid profit growth. In the UK, Vimto has grown across its four key sub-categories, reinforcing the enduring strength and appeal of our iconic brand. Growth has been driven by expanded distribution, investment in our brand and our proven ability to bring compelling new products to market. Our International business delivered impressive growth in Africa, supported by our strategic shift towards a margin-enhancing concentrate model across several West African markets.”
“We have an exciting pipeline of initiatives and plans across our markets in the year ahead and remain focused on delivering further progress against our medium-term ambitions, leveraging the strength of the Vimto brand, the Group’s diversified business model and strong financial position.”