Nichols plc
2021 PRELIMINARY RESULTS
Nichols plc ('Nichols' or the 'Group'), the diversified soft drinks Group, announces its Preliminary Results for the year ended 31 December 2021 (the 'period').
|
|
Year ended 31 December 2021 |
Year ended 31 December 2020 |
Movement |
|
|
£m |
£m |
|
|
|
|
|
|
|
Group Revenue |
144.3 |
118.7 |
+21.6% |
|
|
|
|
|
|
Adjusted Operating Profit 1 |
21.9 |
11.7 |
+88.1% |
|
Operating (Loss)/Profit |
(17.6) |
6.6 |
(366.8%) |
|
|
|
|
|
|
Adjusted Profit Before Tax (PBT) 1 |
21.8 |
11.6 |
+87.9% |
|
(Loss)/Profit Before Tax (PBT) |
(17.7) |
6.5 |
(370.0%) |
|
|
|
|
|
|
Adjusted PBT Margin 1 |
15.1% |
9.8% |
5.3ppts |
|
PBT Margin |
(12.2%) |
5.5% |
(17.7ppts) |
|
|
|
|
|
|
EBITDA 2 |
23.7 |
16.5 |
+44.1% |
|
|
|
|
|
|
Adjusted earnings per share (basic) 1 |
46.15p |
25.56p |
+80.6% |
|
(Loss)/earnings per share (basic) |
(60.04p) |
13.14p |
(556.9%) |
|
|
|
|
|
|
Cash and cash equivalents |
56.7 |
47.3 |
+19.8% |
|
|
|
|
|
|
Proposed Final Dividend |
13.3p |
8.8p |
+51.1% |
|
Full year dividend |
23.1p |
36.8p |
(37.2%) |
Vimto Brand value in the UK +6.3%3
- Vimto squash outperformed the dilutes market by +10.4%3
- Vimto Brand value +13.2%4 since 2019 versus the wider soft drinks market of +11.0%4
Vimto Brand continues to progress internationally, with revenue +21.0% (underlying5 +9.8%)
- Africa and Rest of World significantly ahead
- Underlying5 Middle East revenues broadly flat (-2.0%)
Out of Home (OoH) continues to recover from the pandemic with revenues +77.4%
- Revenues -31.4% versus 2019, with Q4 improving run rates versus pre-Omicron
- Fixed costs still weighing heavily on overall financial performance
Gross margin improvement to 45.2% (2020: 41.8%)
- Completion of Middle East marketing investment
- Significant volume recovery in OoH
Continued strong cash performance, Free Cash Flow6 +£17.5m (2020: £17.6m)
- Cash Conversion7 at 103% (2020: 186%)
OoH impairment review completed and strategic review commenced
Exceptional charge of £39.5m
- £36.2m of this attributable to non-cash impairment of OoH Goodwill
- £0.6m operational review and restructuring (cumulative £0.9m)
- £2.6m net liability relating to tax and interest on historic incentive schemes
Final dividend of 13.3p proposed, reflecting 2x cover8
1 Excluding Exceptional items
2 EBITDA is the statutory profit before tax, interest, depreciation, and amortisation
3 Source: Nielsen, Total Coverage 12 months to 1 January 2022
4 Source: Nielsen, Total Coverage 12 months to 1 January 2022 vs. 12 months to 4 January 2020
5 Excluding the impact of the Group's marketing investment in the Middle East
6 Free Cash Flow is the net increase in cash and cash equivalents before acquisition funding and dividends
7 Cash Conversion is the Free Cash Flow / Adjusted Profit After Tax
8 Dividend cover is adjusted basic earnings per share divided by the dividend per share
John Nichols, Non-Executive Chairman, commented:
“The continued strengthening of the Vimto brand, both in the UK and internationally, combined with the benefits of our diversified business model, has ensured another resilient financial performance in the period. We have achieved significant outperformance of the Vimto brand in dilutes in the UK, and we delivered solid growth internationally, particularly in Africa where we continue to grow, and critically delivered a robust performance in the Middle East. In this, my 50th year with the Group, I would like to wholeheartedly thank everyone for their efforts.
The Coronavirus pandemic has continued to present significant challenges for us all throughout 2021. Our first and most important objective continued to be the protection and wellbeing of our employees and customers. Throughout these difficult times, I have been delighted to witness how our colleagues have pulled together and consistently demonstrated their values and commitment to our business.
The Group enters 2022 with excellent momentum and in a strong financial position. The Group's Adjusted PBT1 expectations for the year FY222 are unchanged, whilst we remain mindful of the well-publicised inflationary pressures which are now being realised.
In the medium term for 2023 we expect continued revenue growth as well as inflationary and legislation cost pressure. We expect to see high single digit growth in Group Adjusted PBT1 versus FY22.
The Board believes the Group is well positioned to deliver against its long-term growth plans.”