Nichols (NICL) H2 2024 earnings summary

Executive summary

• Delivered strong packaged revenue growth, with UK packaged value and volume both increasing year-over-year.

• Adjusted profit before tax rose 15.6% to £31.4m, with EPS up 13.5% to £0.64.

• Gross margin improved from 42.2% to 45.7%, supporting increased investment in marketing and operations.

• Returned £20 million to shareholders via a special dividend, with total special dividend of 54.8p, and maintained a progressive ordinary dividend.

• Strategic focus on high-margin packaged business, innovation, and international expansion, especially in Africa and Malaysia.

Financial highlights

• Group revenue up 1.2% to £172.8m (like-for-like 5.2%), with UK packaged sales up 6.3% and international like-for-like up 8.2%.

• Adjusted PBT margin reached 18.2%, progressing toward a 20% medium-term target.

• Adjusted EBITDA rose 11.7% to £30.8m year-over-year.

• Cash and cash equivalents at £53.7m after special dividend and ERP investment.

• Proposed final dividend of £0.171, up 9.6%, with total ordinary dividend at £0.32.

Outlook and guidance

• Confident in delivering medium-term ambitions: targeting £225m revenue (+30%), 20% margin, and £45m profit by 2028.

• Continued focus on innovation, including new sub-brands and product formats targeting under-served consumption occasions.

• Expansion in Africa with a second factory in Ivory Coast and increased market share targeted through local production.

• Ongoing investment in marketing, brand building, and international growth, with TV campaigns returning in key regions.

• Strategic focus on accelerating packaged business growth, driving value from Out of Home, and operational transformation.