Nichols Plc · LSE:NICL
Nichols — H1 2026 Earnings Presentation
38 slides from Nichols's earnings presentation, July 2026
Slide 1: 2026 Half Year Presentation
2026 HALF YEAR PRESENTATION 2026 HALF YEAR PRESENTATION 1
Slide 2: Agenda
AGENDA 1 Strategic & Operational Review Andrew Milne 2 Financial Review Matthew Rothwell 3 Looking Ahead Andrew Milne 4 Q&A Andrew Milne and Matthew Rothwell ANDREW MILNE MATTHEW ROTHWELL CEO CFO 2 2
Slide 3: H1 2026 Highlights
H1 2026 HIGHLIGHTS 1 2 033 H1 revenue Continued Ongoing growth +4.7% significant strategic in line with revenue growth progress expectations in Africa delivered 4 5 6 Record H1 cash Full Year Enhanced generation expectations shareholder maintained returns at 1.5x dividend cover 3 3
Slide 4: Strategic and Operational Review
Strategic and Operational Review
Slide 5: Our Strategy Is Clear and Focused
OUR STRATEGY IS CLEAR AND FOCUSED Accelerated growth in our Drive bottom line ACCELERATE GROWTH IN OUR PACKAGED BUSINESS Packaged business value from OOH MORE FROM THIRST FUEL FOR HAPPIER THE CORE FOR NEW GROWTH FUTURE Accelerating organic Driving incremental Fuel growth through Building a happier f
Slide 6: UK Packaged
UK Packaged WE MAKE LIFE BETTER
Slide 7: Vimto Growing in All Sub-Categories
VIMTO GROWING IN ALL 4 SUB-CATEGORIES SQUASH RTD STILL JUICE FLAVOURED CARBS ENERGY £70.8M RSV Value +2.5% Volume VALUE VOLUME VALUE VOLUME VALUE VOLUME VALUE VOLUME -3.7% +1.3% -1.3% +1.0% -0.5% +5.8% -13% +19.0% +16.0% Soft Drinks Category £8.3B RSV VALUE VOLUME VALUE VOLUME VALUE VOLUME VALUE VOL
Slide 8: Value Growth & #2 Position in Squash Maintained
VALUE GROWTH & #2 POSITION IN SQUASH MAINTAINED Broad portfolio of products New 2L flavours to drive Extra value packs weight of purchase Special buys to drive Distribution gains Strong media campaign incremental sales 8 *Source: Nielsen IQ RMS data for the Dilutables category 52w/e 11.7.26 for the
Slide 9: Growing Value Share in Flavoured Carbonates
GROWING VALUE SHARE IN FLAVOURED CARBONATES National distribution campaign New listings on core packs Limited edition flavours to New 500ml bottle design ESG focused eco-clips for drive penetration to drive stand out multipacks 9 *Source: Nielsen IQ RMS data for the Flavoured Carbonates category 52w
Slide 10: Vimto Energy Winning in the Fastest Growing Sub-Category
VIMTO ENERGY WINNING IN THE FASTEST THIRST FOR NEW GROWING SUB-CATEGORY New multipack launch to drive weight New Tropical Cooler flavour to drive of purchase penetration Distribution gains and listings on core Strong marketing activity in store products across key UK customers 10 *Source: Nielsen IQ
Slide 11: Beyond the Bottle: Accelerating Vimto Presence in Health & Wellbeing
BEYOND THE BOTTLE FOCUS ACCELERATING THIRST FOR NEW VIMTO PRESENCE IN HEALTH & WELLBEING Partnership with the UK’s two leading Myprotein Vimto Clear Whey sports nutrition brands No.1 selling product New retailer listings and distribution Exciting new product innovation gains pipeline 11
Slide 12: International Packaged
International Packaged WE MAKE LIFE BETTER
Slide 13: Strong Growth Being Delivered in Africa
STRONG GROWTH BEING DELIVERED IN AFRICA • Vimto in Africa is 70 million litres, over 50% is Red Can • Represents c.1.5%* of total flavoured carbs market in West Africa illustrating scale of growth opportunity • Local production & concentrate strategy driving speed to market and product availability
Slide 14: Another Successful Ramadan Execution in Middle East
ANOTHER SUCCESSFUL RAMADAN EXECUTION IN MIDDLE EAST • Vimto cordial volumes +2.6% v 2025 • Vimto cordial retail value +5% vs +2% cordial category growth • Successful launch of Vimto Rose Cordial • Market share gains across KSA, UAE, Oman & Kuwait 14
Slide 15: Middle East Supply Chain Resilience
MIDDLE EAST SUPPLY CHAIN RESILIENCE • Existing logistics does not rely on transit through the Strait of Hormuz • No disruption to customer service during H1 2026 • Ongoing monitoring of regional geopolitical developments 15
Slide 16: Out of Home
Out of Home WE MAKE LIFE BETTER
Slide 17: Revenue Growth & Continued Focus on Driving Simplification and Profitability
REVENUE GROWTH & CONTINUED FOCUS ON FUEL FOR GROWTH DRIVING SIMPLIFICATION AND PROFITABILITY New customer wins driving postmix Strong slate of film releases driving business in premium food-led outlets cinema footfall & ICEE sales 17
Slide 18: Financial Review
Financial Review WE MAKE LIFE BETTER
Slide 19: Strong Financial Delivery
STRONG FINANCIAL DELIVERY Profitable growth, strong cash generation and increased shareholder returns GROUP REVENUE NET CASH o Further consistent delivery £89.5m +4.7% £66.2m +7.5% o Business model converts profit into cash exceptionally ADJUSTED OPERATING PROFIT ADJUSTED RETURN ON CAPITAL well £14.
Slide 20: Revenue Momentum
REVENUE MOMENTUM Group revenue +4.7% with continued momentum in Africa and UK o All channels in growth o Packaged growth +5.6% o International Packaged increased +12.8% YoY o Africa +17.2% driven predominantly by Red Can sales o No H1 impact from the Africa concentrate transition; full-year LFL grow
Slide 21: Profit Growth Delivered
PROFIT GROWTH DELIVERED Packaged profit growth and disciplined cost control drove earnings progression o Adj. Operating Profit increased by +3.7% to £14.1m o Divisional growth leveraging central investment o Total Packaged profit +£1.9m (+9.6% YoY) to 30.2% margin (+1.1% pts YoY) o OoH profit -£0.6m
Slide 22: Disciplined Profit Delivery
DISCIPLINED PROFIT DELIVERY Gross profit growth and distribution efficiencies funded future facing investment o Gross profit + £1.6m as gross margin remained resilient at 43.9% (HY25: 44.1%) o Distribution costs improved by £0.3m despite inflationary pressures driven by cost savings that leverage ER
Slide 23: Excellent Cash Generation
EXCELLENT CASH GENERATION Record first half cash performance demonstrates the quality of the model o H1 cash generated from operating activities £21.9m (H1 2025: £17.6m) o Year end working capital temporary outflow, fully reversed (as guided) o Free cash flow +£17.3m (H1 2025: £14.2m) o Cash convers
Slide 24: Compounding Shareholder Value
COMPOUNDING SHAREHOLDER VALUE An asset-light model converting growth into cash and returns o Strong balance sheet provides Organic Consistent strategic flexibility growth organic investment & revenue o £66m cash growth acquisitions o 28% ROCE and over 150% cash conversion in H1 Consistent Sustainabl
Slide 25: Capital Allocation Discipline
CAPITAL ALLOCATION DISCIPLINE Strong cash generation supports investment, dividends and M&A flexibility Investment Progressive Potential Surplus cash Capital Allocation in profitable ordinary M&A returned to growth dividend shareholders o Progressive dividend policy now operating at 1.5x (2025: 2.0x
Slide 26: A Compelling Investment Case
A COMPELLING INVESTMENT CASE Strong brands, cash generation and financial flexibility support long-term value creation • Growing soft drinks categories with significant international Attractive markets opportunities International Growth • Vimto continues to scale through innovation, licensing and ge
Slide 27: Trading in Line with Expectations
TRADING IN LINE WITH EXPECTATIONS Strong momentum, financial flexibility and clear strategic priorities o Good trading momentum entering H2 Guidance Area Message Revenue o Inflationary backdrop being monitored and managed Profit £ o Strong balance sheet supports strategic Margin ambitions Cash Stron
Slide 28: Looking Ahead
Looking Ahead WE MAKE LIFE BETTER
Slide 29: UK Packaged
UK Packaged WE MAKE LIFE BETTER
Slide 30: Incremental Growth Through Targeted Portfolio Expansion in UKP
INCREMENTAL GROWTH THROUGH THIRST FOR NEW TARGETED PORTFOLIO EXPANSION IN UKP MACRO CONSUMER TRENDS HUNTING GROUND PRIORITIES NEXT GENERATION HEALTH & WELLBEING EVENING ENERGY Health seen as a lifestyle and no longer aspirational but integral Consumers looking for elevated experiences – experimentat
Slide 31: UK Soft Drinks Sector Forecast to Grow by £2.2 Billion by 2030
THE UK SOFT DRINKS SECTOR IS FORECAST TO THIRST FOR NEW GROW BY £2.2 BILLION BY 2030 CAGR% WHITE WHITE WHITE SPACE SPACE SPACE 31 Base Data: Nichols Demand Spaces Nov 2024: Kantar Worldpanel and Nichols Growth Platform Update May 2025: ForgeMSQ
Slide 32: Launch of Myprotein Water into Health and Wellbeing Space
LAUNCH OF MYPROTEIN WATER INTO THE THIRST FOR NEW HEALTH AND WELLBEING SPACE • Myprotein brand licence - world’s leading online sports nutrition brand • Hydrating 500ml ready-to-drink • High protein with 15g clear whey • Low calorie & zero sugar • Meets consumer demand for functionality + refreshmen
Slide 33: Penetration focused activity: 28 million special packs
• Penetration focused activity • 28 million special packs across 23 best-selling products • £2m multi-media investment • Building on 2025 success 33
Slide 34: UK Wide Deposit Return Scheme
UK WIDE DEPOSIT RETURN SCHEME 20p DEPOSIT ON PLASTIC & METAL DRINKS CONTAINERS 150ml to 3lt October 2027 launch Reduced littering Increased Improved Producer fee will deliver recycling rates availability and costs forecasted environmental drives circular affordability of at £2 million per benefits e
Slide 35: International Packaged
International Packaged WE MAKE LIFE BETTER
Slide 36: Localised Production of Red Can in Africa - Phase 2
LOCALISED PRODUCTION OF RED CAN IN AFRICA - PHASE 2 • New production facility in Ivory Coast • Five more markets to benefit from increased speed to market and availability: Ivory Coast (Q4 2026) Burkina Faso (H2 2027) Ghana (H2 2027) Liberia (H2 2027) Sierra Leone (H1 2028) 36
Slide 37: Summary & Outlook
SUMMARY & OUTLOOK Consistent delivery reinforces confidence in our medium-term ambitions o Good trading momentum entering H2 Medium-term targets: o Continued progress against strategic priorities o Inflationary pressure being monitored and METRIC TARGET managed Sales £225m o Strong balance sheet sup
Slide 38: Thank You
Nichols Thank You