Nichols PLC, a diversified soft drinks group, has released its Preliminary Results for the year ended 31 December 2023. The company reported a strong performance underpinned by its diversified business model and core Vimto brand. The financial highlights include a 3.5% increase in Group Revenue to £170.7m, an 8.7% rise in Adjusted Profit Before Tax (PBT) to £27.2m, and a 75.3% surge in Profit Before Tax (PBT) to £24.3m.

The revenue growth was driven by a 6.1% increase in overall Packaged business revenue, with international packaged revenue rising by 16.8% and UK packaged revenue increasing by 1.3%. The Out of Home ("OoH") business revenue decreased by -3.4% in line with the revised strategy post-restructuring, as anticipated following the exit from unprofitable accounts.

The company maintained a gross margin of 42.3% despite inflationary pressures, and the adjusted operating profit increased by 2.4%. Nichols also reported a strong Free Cash Flow of £20.9m, resulting in cash and cash equivalents of £67.0m. The proposed final dividend stands at 15.6p, marking a 2.0% increase from the previous year.

Strategically, Nichols experienced strong growth across its Packaged business, particularly in international markets, and successfully mitigated inflationary headwinds. The OoH division realized benefits from the strategic review earlier than expected, with a focus on profitability and reduced scale and complexity. The company also made progress against its ESG strategy, including establishing a roadmap for Scope 3 emissions.

Looking ahead, the company has started 2024 trading well and remains confident in its ability to deliver further strategic progress across its business in FY24. Andrew Milne, Chief Executive Officer of Nichols, expressed confidence in the company's prospects for 2024, citing a well-defined strategy in place to drive further growth. He emphasized the company's diversified business model, its portfolio of owned and licensed brands, and its long-term strategic focus as strengths that will enable Nichols to continue delivering value to shareholders.