Nichols has had a good H1, delivering financial and strategic progress and maintaining strong international momentum. Revenue grew by 7% and this flowed through to 9% at the adj. PBT level. These results highlight the strength of the business model and its resilient / diversified market position. We are at the early stages of seeing a renewed focus on the Packaged business to drive growth and the interims reinforce the attractions in this area. OoH is firmly on track to deliver the targeted benefits of the strategic reset. We upgrade our PBT estimates by 3% and maintain a Buy. For a branded soft drinks business which is cash rich with an excellent heritage and prospects of higher profits, a FY24 EV/EBITDA rating of 10x is attractive.
