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(Sharecast News) - Nichols backed its full-year expectations on Tuesday as it hailed a "positive" start to the year.
In an update for the three months to the end of March, the Vimto maker said group revenue rose 4.3% on the year to 41m, in line with the board's expectations.
Total packaged revenues were up 5.6%, driven by "pleasing" performances in the UK and international markets. Meanwhile, UK packaged revenues rose 3.8% to 22.1m, reflecting "a continued focus on innovation" which is expected to continue to contribute positively in the year ahead.
International packaged revenues were up 11.1% to 10m, driven almost entirely by West Africa. Nichols said this "strong" performance is being delivered through a combination of accelerated can export sales and the ongoing shift to a concentrate model.
This was partially offset by lower Middle East revenues, as planned, due to the timing of shipments which are weighted towards the second half of the year.
Out of Home revenues fell 3.3% to 8.7m, in line with expectations, driven by the planned exit of the lower-margin Starslush business and a strategic focus on profitability, Nichols said.
The group maintained its FY26 revenue and adjusted pre-tax profit expectations of 183.1m and 35.3m, respectively.
Nichols said it continues to monitor developments in the Middle East, which may lead to some volatility in supply chains and key input costs.
"While there has been no material impact on the business to date, the group is taking proactive steps to manage potential disruption, with mitigation plans in place and some near-term protection against cost inflation in H1 through contractual cover," it said.
"As previously indicated, the international packaged business is expected to be weighted towards the second half of the year, driven primarily by the timing of concentrate shipments to Africa and, to a lesser extent, the timing of shipments to the Middle East, which commence later in the year, principally as a result of the phasing of Ramadan.
"This will impact the half-year profile. As a result, the group expects performance to be weighted towards the second half with first half profitability expected to be modestly below the prior year. Full year expectations remain unchanged with positive trading momentum set to continue as we complete Phase 2 of our concentrate model shift."
At 0950 BST, the shares were up 3.8% at 963p.
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