Highlights

  • Nichols has been assigned a target price of GBX 1,820 by Berenberg.
  • Shares of Nichols were down 1.87% at GBX 991.16 during today’s trading session.
  • Over the past five days, Nichols’ share price has risen 7.27%, while the one-year performance shows a decline of 21.65%.

Berenberg has issued a target price of GBX 1,820 for Nichols Plc (LSE:NICL), signaling the brokerage’s outlook for the soft drinks group. The rating follows the company’s FY25 trading update, which highlighted continued strategic progress and performance in line with market expectations.

Nichols’ share price was trading down 1.87% at GBX 991.16 during today’s session. Despite this daily decline, the stock has risen 7.27% over the past five days, while the one-year performance remains down 21.65%.

FY25 Trading Performance

For the 12 months ended 31 December 2025, the company delivered modest growth across its diversified soft drinks portfolio. Group revenue increased by 1.3% to GBP 175.0 million, compared with GBP 172.8 million in FY24. The company reported that its adjusted profit before tax is expected to align with market expectations.

Packaged revenue grew by 1.5% year-on-year, supported by a 2.6% increase in the UK Packaged business. Growth across key subcategories was driven by core products as well as new product innovation. International packaged revenue was broadly in line with the prior year, with like-for-like growth of 2%, largely reflecting progress in Africa where the company achieved 10% like-for-like growth. Performance in the Middle East was affected by shipment timing changes linked to Ramadan in 2025.

Out of Home (OoH) revenue remained consistent year-on-year, following the exit of the low-margin Starslush business. The company continues to prioritise profitability and contribution to the Group’s overall performance.

Financial Position and Cash Generation

Nichols maintains a favourable balance sheet, with cash and cash equivalents of GBP 55.8 million as of 31 December 2025, compared with GBP 53.7 million a year earlier. Investments during the year included the successful implementation of a new ERP system, enhancing operational efficiency. The company remains committed to a progressive dividend policy and returning surplus cash to shareholders.

Outlook for 2026

Looking ahead, Nichols is focused on expanding its UK Packaged business through extending core ranges and innovation, while developing international markets and continuing the shift to higher-margin concentrate models in Africa. With an asset-light business model and solid market position, the company expects to deliver on its medium-term strategic and financial plans, aiming to create value for shareholders in 2026 and beyond.