Member Article

Newton-Le-Willows Vimto manufacturer pre-tax profit up 14.1%

Newton-Le-Willows based Nichols plc, the manufacturer of soft drinks including Vimto, Panda and Sunkist report pre tax profit is up 14.1% at £25.7 million.

The company report that this is due to an increase in group sales of 3.5% to £109.2 million representing a growth of 4.1% on a constant exchange rate.

The group has seen strong growth both in the UK and internationally.

The company’s success can also be attributed to a rebrand and advertising campaignwhich has increased sales of Vimto in both the UK and internationally

The company has also had a strategy of focussing on value over volume which has meant its operating margin has improved to 23%.

Non-Executive chairman, John Nichols, said: “2014 was another strong year for Nichols as the Group once again outperformed the wider soft drinks market on its way to delivering double digit operating profit growth, pre-exceptional items.

“This strong outcome is again underpinned by the strength and heritage of our core Vimto brand both in the UK and internationally, as well as the diversity of our products and markets.

“We remain focused on delivering our growth strategy both in the UK and internationally and we look forward to the year ahead with confidence.”

The company is also tackling issues of obesity and sugar consumption in the soft drinks industry.

It has pledged to reduce its calories year on year and since 2011 has reduced calories by 28% in its Ready to Drink products.

It has also increased sales of no added sugar drinks to 36% and the its total use of sugar has reduced by 23%.

This was posted in Bdaily's Members' News section by Sophia Taha .