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Nichols sales jump in first quarter on pandemic recovery, chairman to step down

The Vimto brand led a recovery in the UK soft drink market, but industrial action in Spain held back international sales

Nichols PLC (AIM:NICL) said its profit expectations remain unchanged for 2022, though it continually faces significant inflationary pressure.

A formal search is underway to find a successor to chairman John Nichols, who announced plans to retire after 50 years at the group and 15 years as non-executive chairman.

The soft drinks company's group revenue increased 28.9% year-on-year to £39.6mln.

In spite of Covid restrictions through the first quarter of 2021, the group's out-of-home route to market has seen significant growth at 1,387% year-over-year, the company said in a trading update.

The Vimto brand has outperformed the UK soft drink market, with growth of 10.8% in value terms in the year to date, compared to a growth of 9.8% for the overall market.

As a result of national driver industrial action in Spain caused by rising fuel prices, the group's International division has had a slower start than in the prior year and is down 16%.

The company said it is taking steps to mitigate these pressures.

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