The Q1 update shows the business to continue to trade in line with expectations. We make two key points: (1) UK trading remains robust whilst International continues to make good strategic progress. (2) Tariff risk is relatively limited given <2% revenue exposure to the US; good mid-term supply contracts should mitigate any inflation headwinds whilst from a demand perspective, soft drinks are a defensive category. We leave our forecasts unchanged which show a 3-year EPS CAGR of 6% on prudent assumptions. Nichols continues to offer a best-in-class combination of organic growth and margin upside, track record of winning market share and exciting international growth prospects. The shares have fallen 9% since the March finals on market volatility and, trading on 18x P/E and 11x EV/EBITDA FY25e, are worth revisiting for quality/growth orientated investors. We remain buyers, with an unchanged 1485p TP.
