War dents Vimto profits

THE maker of Vimto has said profits will be lower following a blockade of the fizzy drink in war-torn Yemen and a slowing economy in Saudi Arabia.

Soft drinks group Nichols said hostilities in the Arab nation has resulted in the supply route to its Yemeni distributor being blockaded, meaning it is unable to send Vimto shipments as planned this month. As a consequence, adjusted pre-tax profit for 2017 is expected to be in line with last year.

For next year, Nichols believes the conflict, coupled with ‘slowing in the Saudi economy’, will mean sales across the region are ‘likely to be less than previously anticipated’.