Nichols Plc · LSE:NICL
Nichols — H1 2025 Earnings Presentation
33 slides from Nichols's earnings presentation, July 2025
Slide 1: Half Year Presentation
HALF YEAR PRESENTATION July 2025 1
Slide 2: Agenda
AGENDA 01 Strategic & Operational Review: Andrew Milne, CEO 02 Financial Review: David Taylor, Interim Finance Director 03 Looking Ahead: Andrew Milne 04 Q&A Andrew Milne and David Taylor ANDREW MILNE DAVID TAYLOR 2
Slide 3: Half Year 2025 Highlights
HALF YEAR 2025 HIGHLIGHTS 01 02 03 Continued delivery Strong revenue Successful go-live of against the key growth in Africa of ERP to launch business strategic initiatives +17% vs H1 24 transformation outlined in the CMD programme 04 05 06 Adjusted operating Strong well diversified Full year adjuste
Slide 4: Strategic & Operational Review
STRATEGIC & OPERATIONAL REVIEW
Slide 5: Our Strategy Is Clear and Focused
OUR STRATEGY IS CLEAR AND FOCUSED ACCELERATE GROWTH IN OUR PACKAGED BUSINESS DRIVE BOTTOM LINE VALUE FROM OUT OF HOME MORE FROM THIRST FUEL FOR HAPPIER THE CORE FOR NEW GROWTH FUTURE Accelerate organic growth Drive incremental growth Fuel growth through Build a happier through distribution and throu
Slide 6: UK Packaged Soft Drinks Market
UK PACKAGED SOFT DRINKS MARKET
Slide 7: Resilient UK Soft Drinks Market
RESILIENT UK SOFT DRINKS MARKET SQUASH RTD STILL JUICE FLAVOURED CARBS ENERGY £56.7M RSV Value +4.9% Volume +4.1% VALUE VOLUME VALUE VOLUME VALUE VOLUME VALUE VOLUME +2.8% +4.3% +20.2% +22.4% -4.1% -4.8% +30.7% +37.8% Soft Drinks Category £6.4B RSV VALUE VOLUME VALUE VOLUME VALUE VOLUME VALUE VOLUME
Slide 8: Strategy in Action: More from the Core
STRATEGY IN ACTION MORE FROM THE CORE CATEGORY STRATEGY DRIVING INCREASED DISTRIBUTION & VISIBILITY IN STORE • Leveraging the category strategy • Customer collaboration • Branded bays in squash aisles • Strong availability and visibility • Organic growth • Portfolio expansion • Strong growth UK PACK
Slide 9: Strategy in Action: Thirst for New
STRATEGY IN ACTION THIRST FOR NEW VIMTO ACCELERATION New functional squash • Double • Vimto energy price- • Beyond the Bottle •• Upweighted Investment • concentrate Licensed Category Expansion • UK Packaged Focused offering marked packs • Innovation Focus • Driving visibility • Taste & Appeal • Valu
Slide 10: Strategy in Action: More from the Core
STRATEGY IN ACTION MORE FROM THE CORE AT THE HEART OF OVER 100 RAMADANS IN THE MIDDLE EAST • World class execution of iconic bottle • Over 100 Ramadans • Multi-media communications campaign • THE Iftar table beverage • Back on TV • Emotional connection INTERNATIONAL 10
Slide 11: Strategy in Action: More from the Core
STRATEGY IN ACTION MORE FROM THE CORE LOCALISED PRODUCTION & INCREASED MARKETING IN WEST AFRICA DRIVING STRONG GROWTH • Vimto in Africa is 60 million litres, 50% is Red Can • Successful implementation in three markets in H1 2025, three to follow in H2, and five more in 2026 in line with plan • Local
Slide 12: Strategy in Action: Thirst for New
STRATEGY IN ACTION THIRST FOR NEW PORTFOLIO GROWTH MIDDLE EAST MALAYSIA LAUNCH • Growing Zero sugar portfolio for • Launch into new geography consumers • 1L squash in over 3000 stores nationwide • Driving penetration and bringing • TV advertising campaign incremental growth INTERNATIONAL 12
Slide 13: Strategy in Action: Fuel for Growth
STRATEGY IN ACTION FUEL FOR GROWTH OUT OF HOME BUSINESS TRANSFORMATION • Continued simplification in line with • ERP system (SAP) now live the strategic review • Benefits include: • New cinema customer o Supply chain and procurement • Starslush phased exit efficiencies • Profitable outlets focus o R
Slide 14: Strategy in Action: Happier Future
STRATEGY IN ACTION HAPPIER FUTURE EVERYONE PRODUCTS WE’RE OWNING OUR MATTERS PROUD OF CLIMATE IMPACT • Day to Make a Difference raised • Light-weighting bottles reduced • Localised production in Senegal £30k for Cancer Research plastic usage by 160 tonnes p.a. now supplying three markets • Strong su
Slide 15: Financial Review
FINANCIAL REVIEW
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS Strong progress on all key financial metrics in line with strategic ambition 16
Slide 17: Revenue
REVENUE Increase in revenue to £85.5m, predominantly driven by higher volumes o Group revenue +1.8% (LFL +3.7%) 84.0 1.7 2.0 0.4 85.5 o UK Packaged +3.7% (1.8) (0.6) o International Packaged -2.5% (LFL +5.7%) due to phasing of ME – earlier timing of Ramadan in 2025 - and shift to concentrate model i
Slide 18: Segmental
SEGMENTAL Profit growth delivered by all our businesses Packaged Regions Total Out of Total o Adj. OP increased by 4.1% to £13.6m UK International Packaged Home Central Group H1 25 £m £m £m £m £m £m o Absolute gross profit increase offsetting Revenue 47.0 19.5 66.5 19.0 - 85.5 increases in distribut
Slide 19: Adjusted Profit Before Tax
ADJUSTED PROFIT BEFORE TAX Continued focus on cost and investment in Operations and Supply Chain o Gross profit 14.5 0.7 0.1 14.6 o Gross profit +£0.7m (0.3) (0.4) o Gross margin maintained at 44.1% o Administrative Expenses £m o Investment in Operations & Supply Chain o Investment in IT o Control o
Slide 20: Exceptional Items
EXCEPTIONAL ITEMS Further investment in the Group’s Business Change Programme leading to successful launch of new ERP system H1 2025 2024 Business Change Programme and Systems Development £3.2m £7.6m Historic Incentive Scheme - (£0.2m) 20
Slide 21: Net Cash
NET CASH Strong cash maintained to support growth 6.4 0.9 14.3 61.6 (0.6) (3.8) o Strong net cash position at £61.6m 53.7 (3.2) (6.2) o Adjusted EBITDA £14.3m +1.1% o Exceptional cash out £3.2m - ERP o Free cash flow of £14.2m driven by lower working capital requirements o Reduced net interest incom
Slide 22: Capital Allocation and Dividends
CAPITAL ALLOCATION AND DIVIDENDS Ability to deliver strategy and create shareholder value Investment Progressive Potential Surplus cash Capital Allocation in profitable ordinary M&A returned to growth dividend shareholders Dividend 2x 29.9p 15.0p cover Adj. EPS (basic) 12 September 2025 22
Slide 23: Looking Ahead: H2 2025 Focus
LOOKING AHEAD H2 2025 FOCUS
Slide 24: Strategic Focus UK Packaged: Igniting Innovation
STRATEGIC FOCUS UK PACKAGED IGNITING IGNITINGINNOVATION INNOVATION IGNITING INNOVATION • Wonderfuel Launched Q2 2025 • Successful distribution build: Tesco, Sainsbury’s, Morrisons, Ocado, Booths • Major Back-to-School activation in September to drive trial and win with families • £1m investment in m
Slide 25: Strategic Focus UK Packaged: Brand Investment
STRATEGIC FOCUS UK PACKAGED BRAND INVESTMENT IGNITING INNOVATION IGNITING INNOVATION • LOVE THE TASTE brand campaign year two • Bigger & Bolder: increased investment, product range, and number of packs • Proven ROI and penetration growth • Widely supported by retail & wholesale customers 25
Slide 26: Strategic Focus International
STRATEGIC FOCUS INTERNATIONAL USA INNOVATION AFRICA • Local production to • New flavours & pack formats • Roll-out of locally produced drive financial and in the Middle East Red Cans to supply three sustainability benefits additional markets in 2025, • 250ml Red Can in West Africa and then five more
Slide 27: Summary & Outlook
SUMMARY & OUTLOOK
Slide 28: Summary and Outlook
SUMMARY AND OUTLOOK o Strong financial delivery in line with our 2024 CMD o Clear and focused strategy medium term ambitions o Accelerate growth in Packaged business o £225m Turnover o Drive bottom line value from OoH o 20% PBT margin o Continued focus on driving efficiencies through o £45m PBT Oper
Slide 29: Questions
QUESTIONS
Slide 30: Appendices
APPENDICES
Slide 31: Consolidated Income Statement
Unaudited Unaudited Audited Half year to Half year to Year ended CONSOLIDATED 30 June 2025 30 June 2024 31 December 2024 £’000 £’000 £’000 Continuing operations Revenue 85,488 83,976 172,809 INCOME Cost of sales (47,788) (47,021) (93,855) Gross profit 37,700 36,955 78,954 Distribution expenses (5,50
Slide 32: Consolidated Statement of Financial Position
Unaudited Unaudited Audited 30 June 30 June 31 December CONSOLIDATED 2025 2024 2024 £’000 £’000 £’000 ASSETS Non-current assets Property, plant and equipment 8,596 8,773 8,743 STATEMENT Intangibles 137 215 175 Pension surplus 3,939 3,715 3,721 Total non-current assets 12,672 12,703 12,639 Current as
Slide 33: Consolidated Statement of Cash Flows
Audited Half Half Year ended CONSOLIDATED 30 June 2025 30 June 2024 31 December 2024 £’000 £’000 £’000 £’000 £’000 £’000 Cash flows from operating activities STATEMENT Profit for the financial period 8,526 8,876 17,838 Adjustments for: Depreciation and amortisation 711 975 1,909 Loss on sale of prop