Sales of Vimto have been highlighted as the driving force behind a surge in profits for Nichols, according to figures from the organisation's latest financial results.
It comes as the company stated that chief executive officer Brendan Hynes is to step down and represents a strong end to 2012. The preliminary statistics for the firm for the year up to December 31st showed that there had been a nine per cent rise in overall group sales adding to £107.8 million. This had a knock-on effect and sent pre-tax profits soaring by 13 per cent up to £20.5 million. Officials at Nichols admitted that this was way beyond their initial expectation and that earning per share had also grown 14 per cent to 41.1p.
Vimto was noted as being a key factor in Nichols' substantial growth over the past 12 months with the drinks group increasing sales "significantly". It has made great strides within the markets and rose nine per cent to £85 million. Officials explained that the Vimto brand has been performing well over 2012 and has been influenced by heavy marketing investments. New products such as the Levi Roots and Weight Watchers ranges have also contributed to the increased profits for Nichols.
The soft drink was first introduced to the UK in 1908 and has been a popular choice for youngsters and adults alike since its very inception. In recent times the brand has undergone a revamp and now Vimto is depicted by three CGI-created animated fruit characters and this has struck a chord with consumers, especially on home soil.
Mr Hynes explained that the surge in Nichols' success in the past year had been despite the rise in raw materials costs aided by inflation hitting gross margin in the country. Competition in the market has also been intensified making it increasingly difficult to fend off fellow companies. He added that Nichols intends to continue its investment programme of its successful brands in the coming years.