Updated 7:34pm 26 May 2012

Profits put the fizz into Vimto

VIMTO maker Nichols has put the fizz into its centenary year with news that profits have risen despite “difficult” trading conditions last year when summer bad weather hit UK soft drink sales.

Newton-le-Willows based Nichols said its pre-tax profit for 2007 rose 13.3% to £9m on revenues up 5.7% to £55.3m.

It said Vimto, which first hit the nation’s shelves in 1908, grew its overall UK sales in a challenging market and also saw overseas revenues soar 30%.

Its crucial Middle Eastern sales were boosted thanks to a “viral marketing” campaign using videos on website YouTube.

Chief executive Brendan Hynes said: “I am delighted to report in this very special year that in 2007 the group continued to perform strongly and we produced an excellent set of results.”

Full-year revenues at Nichols’ soft drinks operation rose 4.5% to £41.7m, with operating profits up 7.1% at £8.3m.

Poor summer weather hit the whole UK soft drinks market, but Nichols says Vimto outperformed the market thanks in part to strong promotional activity.

Still drinks sold under the Panda brand grew their market share, but Panda fizzy drink sales “suffered” thanks to the market trend away from carbonated drinks.

International soft drinks revenues for 2007 reached a record £8.9m, up 30% year-on-year.

Overseas consumption of Vimto reached a record 342m litres during the year.

Non-executive chairman John Nichols, a descendent of Vimto’s creator John Noel Nichols, said: “These are a strong set of results, especially given the degree of weather-related difficulty generally experienced by the soft drinks sector during 2007.

“I am also pleased to report we have a strong, focused business that is generating good

returns and positive cash.

“Our core brand Vimto is well positionedy.”

alistairhoughton

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