p Nichols has achieved strong growth of 11% in pre-exceptional profit to £10.0 million in the first half of 2014 on sales up 3% to £56.6 million as it outperformed the UK soft drinks market which grew at 2.7%. Operating profit advanced 12% to £9.9 million and operating margins improved from 16% to 18%.Sales growth in the UK was largely driven by the carbonate category which was 11% ahead compared to the first six months of 2013. Importantly, the incremental sales were achieved whilst maintaining the margin. Nichols’ sales into the still category grew by 3% compared to the prior year.
International sales revenue was £12.8 million at the half year, 12% behind the prior year which is in line with management expectations. Nichols expects international sales in the second half of 2014 to show improved performance.
During the period, stronger Sterling rates against both the US Dollar and the Euro have negatively impacted our international sales, accounting for 3ppts of the 12% year on year decline.
“We expect our UK performance for the remainder of 2014 to maintain the positive trend seen in the first half of the year,” says John Nichols, non-executive chairman of Nichols. “We anticipate international revenues in the second half of 2014 to be ahead of the prior year.” The full year performance is expected to in line with current expectations.
