In This Article:
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Revenue Growth: Up 1.2%, like-for-like basis approximately 5.2%.
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UK Package Division Revenue: Increased by 6.3%.
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International Revenue: Up 5.8%, like-for-like approximately 8.2%.
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Gross Margin Improvement: Increased by over 3 percentage points.
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Adjusted Profit Before Tax (PBT) Growth: Up 15.6% year-on-year.
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Operating Margin: Package business operating margin up 2% to 30.6%.
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Cash and Cash Equivalents: GBP53.7 million, after a GBP20 million special dividend.
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Earnings Per Share: Increased by 13.5% to 64p.
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Adjusted Return on Capital Employed: 31%.
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Proposed Final Dividend: 17.1p, up 9.6%.
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Out of Home Revenue: Down 8.2%, with a 35% increase in profitability.
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Marketing Investment: Increased by GBP1.9 million in the package business.
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Net Cash: GBP53.7 million, with a total return to shareholders of GBP31.2 million.
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nichols PLC (LSE:NICL) reported strong revenue growth in its higher margin package business, with a 4.4% increase in 2024.
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The UK package division saw value growth of 6.3%, outperforming the market growth of 3.8%.
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Gross margin percentages improved by over 3% points across all divisions, enhancing overall profitability.
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The company delivered a significant adjusted profit before tax (PBT) growth of 15.6% year on year.
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Nichols PLC returned GBP20 million to shareholders through a one-off special dividend, in addition to its ordinary dividend policy.
Negative Points
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The out of home business saw a revenue decline of 8.2%, although this was expected due to restructuring.
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There is increased competition in the Middle East, with more brands attempting to replicate Vimto's success during Ramadan.
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The company faces challenges in setting sustainability commitments for its overseas operations, particularly in recycled content and supply chains.
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The impact of the UK autumn budget, including national insurance rises, is expected to increase costs by approximately GBP400,000 annually.
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Negative press regarding the glycerol content in slush products has required reformulation efforts, impacting the product line.
Q & A Highlights
Q: Are you considering introducing tethered caps on your 1 and 2 L cordial plastic bottles in response to EU legislation? A: Andrew Milne, CEO: We are reviewing the possibility of introducing tethered caps, although it's not yet a requirement in the UK. We are discussing this with our co-packers to ensure it is implemented in a user-friendly manner.