Proactive Investors - Vimto owner Nichols PLC (LON:NICL) saw shares rise 6.5% on Wednesday as it prepares for its busiest weekend of trading, with 25 million bottles of the fruity drink set to be bought during Ramadan.
Many Muslims taking part in Ramadan, which starts on March 10, have made Vimto their go-to drink during the religious holiday.
Sales of the drink in the Middle East account for around a third of global sales in 2023, paving the way for a 10% jump in total revenues for the region.
Boss Andrew Milne said Nichols launched a marketing drive to target the region, sparking initiatives like creating a TikTok Arabia account.
Profits before tax lifted close to 9% to £27.2 million during the 2023 financial year, while sales rose 3.5% to £170.7 million.
Milne said cost inflation had fallen to mid-single-digit levels, after suffering double-digit increases in the year prior.
However, he cautioned: “In the last couple of months consumers have been tightening their belts a bit. Interest rates are having a bit more of an effect.”
Trading in 2024 has started well and is in keeping with management’s forecasts, with the group confident it can deliver further strategic progress.
“Innovation remained a critical growth driver and we have an exciting pipeline of new products planned for 2024,” Milne said.