Nichols PLC 2017 Trading Update (7064Z)
December 19 2017 - 1:00AM
UK Regulatory
TIDMNICL
RNS Number : 7064Z
Nichols PLC
19 December 2017
Date: Embargoed until 07.00 Tuesday 19 December
2017
Contacts: John Nichols, Non-Executive Chairman
Marnie Millard, Group Chief Executive Officer
Tim Croston, Group Chief Financial Officer
Andrew Milne, Group Commercial Director
Nichols plc
Telephone: 01925 222222
Website:www.nicholsplc.co.uk
Nick Lyon/Hattie Richard Lindley
O'Reilly
Hudson Sandler N+1 Singer (Nominated Adviser)
Telephone:020 7796 Telephone: 0207 496 3000
4133
Email: nichols@hspr.com Website: www.n1singer.com
Nichols plc
2017 Trading Update
Nichols plc ("the Group"), today issues the following trading
update for the year ending 31 December 2017.
We anticipate Group sales for the year ending 31 December 2017
to continue the strong trend reported at the half year. This sales
performance is again being delivered from both our UK and
international business.
UK sales of the Vimto brand are 9.0% ahead of the prior year (as
at November 2017). This performance is significantly ahead of the
UK market growth of 2.3% (Nielsen year to date 2 December 2017). As
previously reported, this strong sales performance helps mitigate
the margin impact from the increased input costs affecting the
industry.
Internationally, our business in Africa has again delivered an
excellent performance with full year revenues anticipated to be in
excess of 20% ahead of the strong prior year comparatives.
Whilst 2017 sales are still expected to be ahead of the prior
year, the recent escalation of hostilities in Yemen has resulted in
the supply route to our Yemeni customer being blockaded. Therefore,
at this time we are unable to send any further Vimto concentrate
shipments that were planned for December 2017. As a consequence,
management currently expects adjusted Group Profit Before Tax for
the year ending 31 December 2017 to be in line with the prior
year.
Outlook
For the year ahead, we are confident that the strong sales trend
will continue in the UK with the Vimto brand being supported by a
new marketing campaign launching in the spring. In addition, we are
well prepared for the introduction of the Sugar Levy with 100% of
the Vimto and Feel Good brands portfolio already below the levy
threshold.
In our international business, we anticipate the strong growth
trend in Africa to continue in 2018. However, the current conflict
in the Yemen coupled with some reported slowing in the Saudi
economy indicates that sales to the Middle East region in the year
ahead are likely to be less than previously anticipated. As a
result, management currently expects low single digit percentage
profit growth in 2018 in comparison to the current year.
In summary, our diversified business model is expected to
deliver continued sales growth into 2018 and the Group remains
highly profitable. In addition, our strong balance sheet and cash
generation supports ongoing investment in our growth strategy and
our ability to sustain a progressive dividend policy.
The Group's Preliminary results will be announced on 1 March
2018.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Notes to Editors:
Nichols plc is an international soft drinks business with sales
in over 85 countries, selling products in both the Still and
Carbonate categories. The Group is home to the iconic Vimto brand
which is popular in the UK and around the world, particularly in
the Middle East and Africa. Other brands in its portfolio include
Feel Good, Starslush, ICEE, Levi Roots and Sunkist.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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