Sales growth led by OOH Nichols announces strong revenue growth of 19.1% to £80.2m for 1H22, but this reflects growth only in its out of home channel (OOH +131%), and this benefits from comparison to last year’s period when restrictions were still in place in this sector. UK packaged volumes were flat (although this was against a market which was down) and International sales were also lower although this reflects the phasing of deliveries to 2H for the Middle East region. In market sales of cordials in this market were ahead. Margins retreat slightly Profits rebounded too with PBT of £11.3m (vs £8.9m last year) excluding exceptional items, a 26.7% increase. Sales are now back above pre COVID levels but, like many companies, profits are taking longer to recover (1H 2019 PBT £13.3m). Behind this profit improvement EBIT margins were down slightly on 1H21 (-50bps to 12.5%), reflecting the mix of business in the period (OOH is lower margin). The strategic review of the OOH business continues and the group hopes to report on this at the year end. Expectations unchanged for FY22. Management flags significant and accelerating inflation around ingredient and packaging costs, but confirms that as a result of its mitigating actions it remains in line with expectations this year. However, it does expect inflation to continue into FY23. Consensus PBT for FY22 is £25.2m. INV FY22E PBT £25.2m, EPS 54.9p. FY23E PBT £27.4m, EPS 56.5p.