Nichols (NICL) H2 2025 earnings summary

Executive summary

• Delivered double-digit operating profit growth of 10% year-over-year, in line with market expectations and strategic targets.

• Achieved 9.4% like-for-like sales growth, driven by the switch to a concentrate model in Africa and disciplined cost management.

• Maintained a strong cash position with over GBP 55 million, supporting capital allocation and future growth.

• Successfully launched a new ERP system (SAP S/4HANA) with minimal disruption, aiming for payback over 5-6 years.

• Announced a reduction in ordinary dividend cover from 2x to 1.5x from 2026, increasing payout ratios and reflecting board confidence.

Financial highlights

• Adjusted operating profit reached GBP 31.7 million, up 9.9% from the previous year.

• Group revenue rose to £175.1m (+1.3% year-over-year), with UK Packaged up 3.1% and Africa up 5.7% (9.4% like-for-like).

• Adjusted profit before tax (PBT) increased by 7% to £33.6m.

• Cash and cash equivalents at year-end were £55.7 million, up 3.8% year-over-year.

• Final dividend of GBP 0.187, up 9.4% year-over-year, with total ordinary dividend growth of 9.4% to 33.7p.

Outlook and guidance

• Trading in 2026 has started in line with expectations, with continued momentum anticipated.

• New product launches planned for 2026, including new flavors and multi-pack formats in both UK and international markets.

• Expansion into new territories such as Sudan and continued investment in Malaysia.

• Focus on operational efficiencies, business transformation, and M&A opportunities in UK Packaged.

• Dividend cover to be reduced to 1.5x from 2026, increasing payout certainty.