Nichols (NICL) H1 2026 earnings summary

Executive summary

• Achieved 4.7% year-over-year revenue growth to £89.5m, with strong momentum across all channels, especially in Africa and the UK.

• Record first-half cash generation, with cash and cash equivalents at £66.2m, supporting enhanced shareholder returns.

• Strategic focus on higher-margin packaged business, innovation, and international expansion, particularly in Africa and the Middle East.

• Interim dividend increased by 34.7% to 20.2p per share, reflecting an improved dividend policy and earnings growth.

• No exceptional costs in the period following ERP implementation; focus now on operational efficiencies.

Financial highlights

• Group revenue reached £89.5m (+4.7% YoY); adjusted operating profit up 3.7% to £14.1m; adjusted PBT up 2.7% to £15.0m.

• Adjusted EPS (basic) up 1.3% to 30.30p; basic EPS up 29.9% to 30.30p due to absence of exceptionals.

• Operating cash flow reached £22m; free cash flow at £17.3m; cash conversion at 156%.

• Interim dividend per share increased 34.7% to 20.2p; dividend cover at 1.5x, supporting a yield of approximately 5%.

• Adjusted return on capital employed at 27.9%; adjusted PBT margin at 16.8%.

Outlook and guidance

• Full-year performance expected in line with current market expectations; medium-term targets: sales of £225m, PBT of £45m, and 20% margin.

• H2 focus on new product launches, marketing campaigns, and further international expansion.

• Anticipates continued double-digit growth in Africa and mid-single digit growth in Middle East.

• Board remains confident in delivering sustainable growth and medium-term ambitions.

• Fully hedged on major commodities for the remainder of the year; inflationary pressures managed.