LONDON (ShareCast) - Soft drinks producer Nichols said faster growth in the Middle East and in the UK in the second half of the year will boost profit and earning per share growth for 2014.
The group said full year sales for 2014 are expected to increase 3.4% to £113.6m, while international sales rose 4.3% year-on-year and 7.3% on a like-for-like basis thanks to a 12% increase in sales in the Middle East.

"Trading performance has continued the positive trend into the second half of 2014. UK sales grew ahead of the market, and international sales have delivered double digit growth in the second six months of the year compared to the same period in 2013," the company said in a statement.

Nichols also said that "challenging" trading conditions in the UK grocery sector had contributed to slow down growth in the soft drinks market, with sales in the sector growing by just 0.4% over the last 12 months.

"Despite this backdrop, the Vimto brand performed well, showing an increase in sales of 4.5% during the year. This strong performance has been supported by our new Vimtoad advertising campaign and the rebranded packaging launched in the spring," the group said.

Nichols shares were up 3.65% to 934.42p at 14:55 on Thursday.

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