Nichols (NICL) H1 2026 earnings summary

Executive summary

• Achieved 4.7% year-over-year revenue growth to £89.5m, with strong momentum across all channels, especially in Africa and the UK.

• Record first-half cash generation, with cash on balance sheet at £66.2m, and enhanced shareholder returns.

• Strategic focus on higher-margin packaged business, innovation, and international expansion, particularly in Africa and the Middle East.

• Interim dividend increased by 34.7% to 20.2p per share, reflecting updated dividend policy and earnings growth.

• No exceptional costs in the period following ERP implementation; focus now on operational efficiencies.

Financial highlights

• Group revenue reached £89.5m (+4.7% YoY); adjusted operating profit up 3.7% to £14.1m; adjusted PBT up 2.7% to £15.0m.

• Operating profit margin rose to 15.8%; PBT margin at 16.8%; gross margin stable at 43.9%.

• Cash and cash equivalents at £66.2m, free cash flow at £17.3m, and cash conversion at 156%.

• Adjusted EPS up 1.3% to 30.30p; basic EPS up 29.9% due to absence of exceptionals.

• Interim dividend per share increased 34.7% to 20.2p; dividend cover at 1.5x, yield circa 5%.

Outlook and guidance

• Full-year expectations remain unchanged, with strong H2 momentum anticipated and trading in line with expectations.

• Africa expected to maintain double-digit growth, with Ivory Coast facility to drive further expansion.

• Middle East projected to exit year with 5-6% growth; new product launches and rebranding planned.

• Medium-term targets: sales of £225m, profit before tax of £45m, and 20% margin.

• Continued focus on cost discipline and hedged commodity exposure for the remainder of the year.