Vimto maker Nichols plc has reported a 4.3% year-on-year rise in group revenue to £41m for the first quarter of 2026, driven by 5.6% growth in total packaged revenues and “robust performances in both UK and international markets.”
The company will reiterate its full-year guidance, highlighting a strong balance sheet with £59.8m in net cash and emphasizing its asset-light, brand-led model as a foundation for continued profitable growth, at its AGM trading update later today.
UK Packaged revenues increased 3.8% as ongoing product development supported domestic momentum, while International Packaged revenues climbed 11.1% to £10m, with West Africa benefiting from accelerated can exports and a strategic shift to a higher-margin concentrate model internationally.
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OOH revenues fell 3.3%, although this was not entirely unexpected due to the planned exit from the lower-margin Starslush business, reflecting a deliberate pivot toward profitability over volume.
Management confirmed that full-year 2026 revenue and adjusted profit expectations remain unchanged, though performance is expected to be weighted to the second half because of the timing of concentrate shipments to Africa and Middle Eastern orders linked to Ramadan.
The board is closely monitoring potential disruptions from the Middle East conflict, but noted no material impact so far and said contingency and cost-mitigation measures are in place, while also flagging the arrival of new CFO Matthew Rothwell as additional financial leadership for the group’s next growth phase.
Nichols’ geographically and operationally diverse soft drinks model spans UK Packaged, International Packaged and Out of Home routes to market. Its portfolio is anchored by the iconic Vimto brand, alongside licensed names such as Levi Roots, ICEE, SLUSH PUPPiE and Sunkist, with products sold across multiple soft drinks sub-categories and in more than 60 countries, particularly in the Middle East and Africa where Vimto is a staple of the annual Ramadan fast-breaking ritual and also popular all-year-round.
Andrew Milne, chief executive officer of Nichols, said: “We are pleased to have delivered a strong start to the year, with continued revenue growth and further strategic progress in Q1. Our UK Packaged business performed well driven by successful innovation and clear execution against the strategic priorities outlined at our 2024 Capital Markets Day.
In the International Packaged business, our planned strategic shift towards a higher margin concentrate model in several of our West African markets is delivering a step change in margins and positions us well to deliver long-term, profitable growth. Whilst the Middle East conflict has had a limited impact on performance to date, we are taking proactive steps to manage potential disruption, with contingency plans in place to mitigate any associated commodity cost inflation. Our distribution routes do not have direct exposure to the most affected shipping corridors in the region.
He added: “We continue to expect growth and performance in FY26 in line with market expectations as we execute our strategic priorities and deliver further progress towards our medium-term financial and strategic ambitions.”
