LONDON (ShareCast) - Nichols, the soft drinks company behind Vimto, Sunkist and Panda, said it finished 2013 strongly with sales growth gaining momentum in the second half.

The company, which has a market capitalisation of around £440m, said that sales grew at a year-on-year rate of 4% in the second half, pushing full-year sales to £109.9m, up 2% on 2012.

Analysts at N+1 Singer said the results beat their estimates by 2% - they were expecting 2013 sales of £108m - helped by better-than-anticipated sales in the UK. "Clearly the hot summer was a positive stimulus," they said.

Second-half sales in the UK increased by 5%, taking the full-year total for 2013 to £86.8m, up 2%.

Nichols said that it had grown its market share in the 'still' drinks market, with Vimto dilute sales jumping by 11%. Meanwhile, it continues to reduce promotional activity in the "heavily-discounted" 'carbonate' market where fizzy Vimto sales have fallen by 6%.

Overseas, sales rose by 2% in 2013 to £23.1m, helped by continued growth in Africa and a stronger second half in the Middle East.

"In summary, during 2013 we have successfully increased profitability, delivered good sales growth in the second half of the year and we expect the full-year profit and earnings per share to be ahead of the prior year and in line with expectations," the firm said.


BC

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE