Nichols – looking for heatwave benefits in Q3, next week’s Interims look for a FY advance, shares at 998p could rise 15% in due course

Mark Watson-Mitchell - 24.07.2026

Next Wednesday, 29^th July, the £366m-capitalised soft drinks group Nichols (LON:NICL) is due to announce its Interim Results for the six months to end-June.

It could be boasting some £72m cash in the bank by this year-end, the group is expected to see some benefits showing through in this second half-year.

Will next week’s statement help to make analysts upgrade their current-year estimates?

The shares were standing at 1444p a year ago and in March this year were as low as 882p, they are now at 992p trading on 13.9 times prospective earnings.

There are market hopes that next week’s Interims will show grounds for an uplift of 2026 expectations.

The Business

Established in 1908, Nichols operates within the resilient soft drinks category and owns or licenses several brands.

Nichols is geographically and operationally diversified, operating across three routes to market of UK Packaged, International Packaged and Out of Home.

In the UK, Nichols operates across five soft drinks sub-categories: squash, flavoured carbonates, fruit drinks, energy and flavoured water.

Nichols' portfolio includes the iconic Vimto brand plus a growing portfolio of licensed brands including Levi Roots, ICEE, Myprotein and Sunkist.

Under its asset-light model, Vimto is prominent in areas such as the Middle East and Africa and is enjoyed in over 60 countries worldwide.

Two weeks ago, the group announced that it is expanding into the £5.8bn functional drinks market with its September launch of Myprotein Clear Whey Protein Water, which is a new sugar-free, low-calorie, ready-to-drink range containing 15g of clear whey protein per 500ml bottle, with a RSP of £2.99.

AGM Trading Update

On Tuesday, 21^st April, the group reported a positive start to 2026, with group revenue increasing by 4.3% to £41.0m in the first quarter, aligning with expectations.

Total packaged revenues grew 5.6%, driven by a 3.8% rise in UK packaged revenue to £22.1m and an 11.1% increase in international packaged revenue to £10.0m, primarily from West Africa.

Out of Home revenue saw a 3.3% decrease to £8.7m due to the planned exit of the Starslush business.

The company maintains a strong balance sheet with net cash of £59.8m and reiterated its full-year guidance for revenue and adjusted profit before tax, despite monitoring potential supply chain volatility from Middle East conflict.

Management Comment

CEO Andrew Milne stated that:

"We are pleased to have delivered a strong start to the year, with continued revenue growth and further strategic progress in Q1.

Our UK Packaged business performed well driven by successful innovation and clear execution against the strategic priorities outlined at our 2024 Capital Markets Day.

In the International Packaged business, our planned strategic shift towards a higher margin concentrate model in several of our West African markets is delivering a step change in margins and positions us well to deliver long-term, profitable growth.

Whilst the Middle East conflict has had a limited impact on performance to date, we are taking proactive steps to manage potential disruption, with contingency plans in place to mitigate any associated commodity cost inflation.

Our distribution routes do not have direct exposure to the most affected shipping corridors in the region.

We continue to expect growth and performance in FY26 in line with market expectations as we execute our strategic priorities and deliver further progress towards our medium-term financial and strategic ambitions."

 The Equity

There are some 39.97m shares in issue.

The larger holders include Octopus Investments (8.09%), Rathbones Investment Management (7.29%), Bank Julius Bär (4.56%), Investec Wealth & Investment (4.09%), Gresham House Asset Management (Investment Management) (3.84%), Michael Taylor (3.35%), Invesco Asset Management (2.57%), Quilter Cheviot (1.07%), Rowan Dartington (Broker) (0.73%), and J.M. Finn & Co. (0.70%).

Broker Views

The group’s compiled market consensus is for current year revenue of £183.1m and with adjusted pre-tax profits of £35.3m.

Some five firms follow the group, all of whom call the shares as a Buy, with an average Target Price of 1369p, the Lowest at 1150p and the Highest at 1720p.

Analyst Sahill Shan, at Singer Capital Markets, rates the group’s shares as a Buy, with a Target Price of 1485p.

For the current year to end-December, he estimates group revenues of £180.2m (£175.1m), with adjusted pre-tax profits of £35.1m (£33.6m), lifting earnings to 71.6p (67.2p), while jacking up its dividend by 42% to 48.04p (33.70p) per share.

His estimates for 2027 are £187.4m revenues, £37.5m profits, with 76.6p earnings and a 51.34p dividend per share.

Shan sees revenues in 2028 of £193.9m, profits of £39.6m, earnings of 80.8p and paying out a dividend per share of 54.15p.

Deutsche has a Buy note out with 1150p as its TP, while Berenberg rates the shares as a Buy with a 1720p TP.

My View

We all know of its Vimto products, while the prospects for others in its ranges may well have been boosted by the recent heatwaves.

The shares, now at 992p, could soon try to climb upwards again, possibly into the 1100p to 1200p trading range.

(Profile 24.07.26 @ 992p set a Target Price of 1150p)

Ready to energise its shares?