Full-year profits are set to be ahead of market expectations and could rise up to £22m at the soft drinks company behind the iconic Vimto brand after a strong 2021 so far.
Newton-le-Willows-headquartered Nichols plc has said its board now believes its adjusted pre-tax profits for the year will now be between £21m and £22m.
However, the listed group added that while its revenue momentum is expected to continue into 2022, the outlook for the next financial year is "adversely impacted by inflationary pressures including logistics, labour and materials" and therefore profit expectations for 2022 remain unchanged.
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The news has been included in a trading update for the first nine months of the year which saw Nichols' revenue jump ahead of the board's expectations and increase by 17% year on year to £107m.
The statement issued to the London Stock Exchange said: "The Vimto brand has continued to deliver a strong performance across all of its markets.
"In the UK, Vimto brand value has increased by 4.5% YTD, according to Nielsen.
"In Africa, the Middle East, Europe and the US the brand continued to see progress year on year, with International revenues increasing 36% versus the prior year.
"The group's out of home route to market continues to recover from the impact of the pandemic and has seen growth of 29% year on year.
"Cash generation has continued to be very positive through 2021 and despite the ongoing financial challenges posed by the pandemic, cash and cash equivalents at the end of the period were £55.6m (30 September 2020: £45.4m). "
