Business
Trading update
Trading update.
About this update from Nichols Plc
[{"type":"text","content":"\n \nRNS Number : 7418X Nichols PLC 23 December 2019 \n\n\n\n\nDate:\n\n\nEmbargoed until 0700 Monday 23 December 2019 \n \n\n\n\n\nContacts:\n\n\nMarnie Millard, Group Chief Executive Officer\nTim Croston, Group Chief Financial Officer\nAndrew Milne, Group Chief Operating Officer\n \n\n\n\n\nNichols plc\n\n\n\n\nTelephone: 01925 222 222\n\n\n\n\nWebsite: www.nicholsplc.co.uk\n\n\n\n\n\n\n\n\n\nAlex Brennan/ Hattie Dreyfus\n\n\nRichard Lindley/ Rachel Hayes\n\n\n\n\nHudson Sandler\n\n\nN+1 Singer (Nominated Adviser and Broker)\n\n\n\n\nTelephone: 020 7796 4133\n\n\nTelephone: 0207 496 3000\n\n\n\n\nEmail: [email protected]\n\n\nWebsite: www.n1singer.com\n\n\n\n\n\n\n\n\n\n\n\n \nThis announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.\nNichols plc\n(the \"company\" or \"Group\")\nTrading update \n \nTrading update for the year ending 31 December 2019\nGroup sales in 2019 are expected to be c.4.0% ahead of the prior year. We are pleased with this performance given the slowdown in the UK soft drinks market and the challenging broader consumer environment.\nAcross the Group, sales in both the UK and International businesses are ahead of 2018. In the UK, the Vimto brand continues to deliver growth against strong prior year comparatives and increase market share. Within our international markets, Ramadan 2019 has been one of the brand's most successful campaigns across the Middle East region.\nWe currently anticipate full year Profit Before Tax to be in line with market expectations.\n \nGuidance for the year ending 31 December 2020\nThe Saudi Arabian and UAE tax authorities have recently implemented an excise tax of 50%, to be levied on the retail price of non-carbonated sweetened drinks.\nThis tax will be applied to all non-carbonated drinks containing either natural or artificial sweeteners, including sales of Vimto products. Therefore, unlike the UK soft drinks levy, product reformulation is not an option. Whilst it is difficult to estimate the future effect on sales volumes of the Vimto brand in these regions, at this point in time, we have to assume the increased retail price will have a negative impact from 2020. In order to mitigate the impact, we are currently developing plans in collaboration with our long term in-market partner which ...