Nichols PLC has released its unaudited Interim Results for the half year ended 30 June 2024, showcasing a strong first half profit performance and the issuance of a special dividend. The company's adjusted profit before tax (PBT) is expected to be slightly ahead of expectations for the full year. The Group's strategic priorities have continued to drive strong trading during the period, resulting in positive financial outcomes. The company's diversified soft drinks business has shown resilience and growth, with notable achievements in various segments.
The financial highlights for the half year ended 30 June 2024 include a 1.8% decline in Group revenue, reaching £84.0m, and a significant increase in adjusted operating profit and adjusted PBT by 14.1% and 18.0% respectively. The company's cash and cash equivalents also saw a substantial increase of 25.2% to £70.3m. Nichols PLC has demonstrated its commitment to delivering attractive shareholder returns by announcing a special dividend of 54.8p per share, totaling £20m, alongside an 18% increase in the interim dividend to 14.9p per share.
Andrew Milne, Chief Executive Officer of Nichols, expressed satisfaction with the strategic progress in the first half, resulting in strong double-digit increases in adjusted profit before tax and adjusted earnings per share. He also highlighted the company's positive trading momentum in the UK Packaged business, driven by market share gains in squash and carbonates, increased marketing investment, growth from innovation, and distribution gains. The company's Vimto brand achieved its highest ever UK annual retail sales value of £109m, reflecting increased marketing investment and growth from innovation and distribution gains.
The company's international packaged segment saw strong in-market execution across the Middle East during the key Ramadan trading period. Additionally, the Out of Home (OoH) strategic review was largely concluded in the period, delivering significant improvements in profitability. The financial highlights also include a 5.3% increase in UK Packaged revenues, a 6.9% decrease in International Packaged revenues, and an 11.3% decrease in OoH revenues.
Nichols PLC remains confident in its strategic growth ambitions and expects full-year profitability to be slightly ahead of current market expectations. The company has begun trading in Q3 positively and in line with management expectations, reflecting the progress made in H1 and underpinned by the Group's ongoing focus.