**Summary**
Nichols PLC, a diversified soft drinks group, released its FY25 trading update on January 14, 2026, reporting a year of strategic progress with results in line with market expectations. Key highlights include
1. **Financial Performance**
Group revenue increased by 1.3% to £175.0 million, driven by a 1.5% rise in packaged revenue, supported by 2.6% growth in the UK Packaged business.
International Packaged revenue remained stable, with 2% like-for-like growth, reflecting success in Africa (10% growth) despite Middle East shipment phasing due to Ramadan timing.
Out of Home (OoH) revenue was consistent year-on-year, focusing on profitability after exiting the low-margin Starslush business.
Gross margins remained strong, with inflation offset by cost management and ERP system implementation.
2. **Strategic Progress**
Continued shift to a higher-margin concentrate model in Africa, enhancing profitability despite lower revenue.
Strong performance in the UK, driven by core products and new innovations like the Wonderfuel squash proposition.
3. **Financial Position**
Cash and cash equivalents grew to £55.8 million, reflecting continued investment in the ERP system, now fully implemented.
Commitment to a progressive dividend policy and returning surplus cash to shareholders.
4. **Leadership Update**
Matt Rothwell appointed as Chief Financial Officer, effective April 2026, bringing significant consumer-facing business experience.
5. **Outlook**
Confidence in 2026 outlook, leveraging the asset-light, diversified business model and growth opportunities in the UK and international markets.
Focus on innovation, category expansion, and the concentrate model in Africa to drive medium-term ambitions.
CEO Andrew Milne emphasized effective execution of strategic plans, particularly in Africa and the UK, and highlighted exciting plans for the year ahead to deliver shareholder value.