Nichols (NICL) H1 2025 earnings summary

Executive summary

• Delivered 1.8% revenue growth to £85.5m in H1, with strong contributions from UK Packaged and Africa, and 4.1% adjusted operating profit growth, aligned with strategic plans and supported by robust cash flow.

• Successfully launched SAP S/4HANA ERP system as part of a business transformation program to drive long-term efficiency and operational improvements.

• Maintained strong performance across UK packaged, international packaged, and out-of-home segments, with a diversified business model and ongoing innovation.

• Full-year adjusted profit before tax forecast remains in line with market expectations, supporting confidence in medium-term targets.

Financial highlights

• Group revenue reached £85.5m, up 1.8% year-over-year; like-for-like revenue up 3.7%.

• Adjusted operating profit rose 4.1% to £13.6m; adjusted EBITDA up 1.1% to £14.3m; adjusted PBT at £14.6m (+0.8%).

• Free cash flow was £14.2m, up from £9m last year; net cash position at £61.6m.

• Interim dividend per share increased to 15.0p; return on capital strong at 30.4%.

• Adjusted EPS at 29.90p (+0.1%); dividend cover policy remains at 2x earnings.

Outlook and guidance

• Adjusted PBT expected to be in line with forecasts at £33.1m for the full year; board confident in delivering medium-term financial objectives.

• H2 expected to accelerate due to Middle East phasing, ERP rollout, and new product launches.

• Strategic priorities include innovation, marketing investment, international expansion, and operational efficiencies.