Nichols (NICL) Trading update summary

Financial performance

• FY24 revenue increased by 0.8% to £172.1m, with adjusted profit before tax expected in line with market expectations.

• Packaged business sales rose 3.8% for the year, with UK sales up 5.4% due to innovation and distribution gains.

• International business maintained revenue levels, shifting to a margin-enhancing concentrate model in several African markets.

• Out of Home revenue declined by 8.2% following strategic exits from unprofitable accounts.

• Gross margins improved as inflationary pressures eased and product mix shifted favorably.

Cash and investment

• Cash generation remained strong, with year-end cash and equivalents at £53.7m after a £20m special dividend.

• Increased interest receipts contributed to financial stability.

• Improved gross margin stability enabled greater investment in long-term strategic development.

Strategic outlook

• Diversified business model and established UK presence support medium-term growth ambitions.

• Continued investment in product range extension and international market development expected to drive growth.

• Inflationary pressures are moderating, but uncertainty in some markets persists; mitigating actions are in place.

• Confidence remains high in delivering strategic plans and sustainable shareholder returns.