Vimto Maker Sets £225M Revenue Target

Nichols, the soft drinks company known for its iconic Vimto brand, has set ambitious targets for increasing both its sales and pre-tax profits. For 2023, the Newton-le-Willows-based company reported annual revenues of £170.7 million and pre-tax profits of £24.3 million. This positive trend continued into 2024, with Nichols recording £84 million in revenue and £14.5 million in pre-tax profits for the first half of the year, an 18% increase over the same period last year. The company also rewarded its shareholders with a £20 million dividend.

In a recent trading update, Nichols confirmed that it remains on track to meet market expectations for 2024, with projected revenues of £172 million. However, the company’s medium-term goal is to reach annual revenues of at least £225 million and pre-tax profits of £45 million.

Nichols markets Vimto and other well-known brands, including SLUSH PUPPiE, Feel Good, Starslush, ICEE, Levi Roots, and Sunkist, in more than 60 countries. Vimto, in particular, has a strong following in the Muslim world, especially during Ramadan when it’s enjoyed for its quick, energy-boosting sugar content after a day of fasting.

The company’s strategy aims to build a high-margin, cash-generative, diversified business model, leveraging Vimto’s unique brand appeal. Nichols plans to enhance shareholder value through disciplined capital allocation and a strong balance sheet.

CEO Andrew Milne expressed optimism, stating, “Our financial ambition is grounded in our commitment to innovation, expanding distribution in current markets, entering new regions, and continuous brand investment. We are excited and confident in the growth opportunities ahead.”