Vimto maker Nichols has hiked its dividend by a third, after a “strong period of strategic and financial progress” in its first half.
Group revenue grew 4.7% in the half to 30 June 2026, as Nichols took £89.5m in sales, supporting a bump to profits.
CEO Andrew Milne told shareholders this morning the board had decided to increase its dividend per share by 34.7% to 20.2p.
The boost to dividends was funded by profit growth, as adjusted operating profit increased 3.7% to £14.1m and adjusted profit before tax edged up to £15m.
UK sales were up slightly in the half, growing 2.3% to £48.1m, which Nichols attributed to new distribution wins, value share gains in carbonated drinks and innovation-led growth. This year the company has also moved into the health and wellness category by partnering with fellow UK PLC THG to create Myprotein branded protein water, which will launch in September.
But Nichols’ strongest growth came once more from Africa, where sales are booming. Growth in the half hit 17.2%, and the company said its ongoing transition to higher-margin sales of concentrate to local bottlers had continued to boost profits. Nichols saw a 25% increase in its EBITDA last financial year thanks to the strategy.
Revenue in the Middle East was “in line with management expectations” at 6.3% growth, with sales anticipated to be higher in the second half of the year in preparation for 2027’s Ramadan.
Milne said he was “pleased” about the company’s results in the region given ongoing geopolitical uncertainties.
Reiterating the company’s full-year guidance, Milne added he “remained confident” in the company’s medium-term outlook.
He said: “Supported by our strong portfolio of brands, geographically diversified model, robust balance sheet and significant financial flexibility, we remain confident in our ability to deliver sustainable growth and create long-term shareholder value.”
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