Merseyside Vimto maker Nichols offers assessment on how Donald Trump’s US tariffs will hit its international business as it reports quarterly revenues of £39.3m. Tony McDonough reports
Soft drinks firm and producer of the famous Vimto brand, Nichols, is reporting a 1.2% rise in revenues to £39.3m for the three months to March 31.
Newton-le-Willows-based Nichols also sought to calm investor fears over the potential impact of tariffs being imposed by US President Donald Trump on its international business.
Nichols sells Vimto in more than 60 countries around the world. It is also behind the SLUSH PUPPiE Feel Good, Starslush, ICEE, Levi Roots and Sunkist soft drink brands.
Vimto is particularly popular in the Muslim world during the holy month of Ramadan. It provides a quick boost of sugar-filled energy following the dawn ’til dusk fast.
In an update to the stock exchange on Wednesday, Nichols said: “The overall economic impact of recent volatility in global markets arising from tariff changes being implemented by the US Government remains unclear.
“We have reviewed the potential implications and our initial assessment is that given the group’s diverse geographic revenues, our direct exposure to the most affected markets is limited, representing less than 2% of group revenue.”
Nichols said its year-on-year revenue rise in the first quarter of the year was driven by a 4% rise in UK packaged revenues, where it sells to major retailers and wholesalers, to £21.3m. It saw continued distribution gains and underlying volume increases for Vimto.
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Its international packaged revenue saw an expected decline of 7.6% to £9m (2024. This reflects the phasing of shipments to the Middle East due to the timing of Ramadan as well as the strategic shift towards the higher margin concentrate sales model in West Africa.
Nichols Out of Home division, which sells to hospitality outlets, increased revenues by 4.6% to £9m. At the end of the quarter net cash and cash equivalents stood at £60m.
Chief executive Andrew Milne said: “We continue to expect further growth in FY25 in line with market expectations as we continue to execute our strategy and make progress towards our medium-term financial and strategic ambitions.”