Nichols, the soft drinks group behind the Vimto brand, has reported a 7% rise in adjusted pre-tax profit to £33.6m for the year to 31 December 2025, as strategic changes across its business fed through to improved margins.
Group revenue edged up 1.3% to £175.1m, but underlying performance was strong as the group took control of costs and focused on expanding margins. Adjusted operating profit rose 9.9% to £31.7m, while adjusted operating margin improved to 18.1% from 16.7% the prior year.
The level of efficiency Nichols has demonstrated over the past year should please shareholders, even if they would prefer a little more top-line growth.
UK Packaged
The UK packaged division drove growth during the period, with revenue up 3.1% year-on-year. Vimto achieved a record retail sales value of £129.1m, driven by innovation and distribution gains across squash, energy and ready-to-drink categories. The group’s total UK retail sales value reached £135m, up 4.8%.
New launches helped boost sales. Vimto Wonderfuel, a functional health drink aimed at the breakfast occasion, secured national distribution and brought new shoppers into the squash category. The energy range continued its rapid expansion, with Vimto Energy delivering £4m in retail sales, a 41% increase on the prior year, just two years after launch. Brand licensing partnerships with Myprotein and Applied Nutrition extended the Vimto name into health and wellness products.
International
International revenue was broadly flat year-on-year, though the headline figure reflects a deliberate strategic shift in Africa from finished goods to a concentrate production model, which reduces reported revenue but improves margins. On a like-for-like basis, African revenue grew 9.4%.
Middle East revenues fell 15.5%, largely due to the timing of concentrate shipments and the phasing of Ramadan between years. The group relaunched Vimto cordial in Yemen and Iraq in partnership with Aujan Coca-Cola Beverages Company. Rest of World markets delivered solid progress, with European revenue up 6% and US sales growing 23% through regional expansion with a local partner. In Malaysia, launched in late 2024, Vimto cordial is now stocked in over 3,000 stores.
The out-of-home division trading was a little more benign amid tough conditions for the hospitality sector, which has been well documented.
The group exited the low-margin Starslush brand in the first half through a partnership with Polar Krush, simplifying operations to focus on post-mix in leisure and hospitality and the ICEE frozen drinks brand in cinemas.
Nichols finished the year with £55.7m in cash and proposed a final dividend of 18.7p, taking the full-year ordinary dividend to 33.7p, up 5.3%.
The 3.5% yield should be attraction of the business, which is fairly well valued on an earnings basis.