LONDON: The UK producer of Vimto has warned of tougher trading conditions in the Middle East.
The soft drinks company Nichols said that the the war in Yemen has led to a supply disruption which could impact sales.
While sales in the 12 months to December are still forecast to rise, the company now expects its adjusted pretax profit to be in line with last year’s results, according to a filing on the London Stock Exchange.
Nichols said it forecast low single-digit profit growth next year due to the Yemen crisis as well concerns about a possible slowdown in the Saudi Arabian economy.
It said sales to the Middle East in 2018 “are likely to be less than previously expected.”
Vimto has long been popular across the Middle East – especially during Ramadan when sales have tended to rise significantly.
Elsewhere, the company said its Africa business has been “excellent” with full-year revenue forecast to exceed last year’s results by 20 percent.
It said the “strong growth trend” in the region is likely to continue in 2018.
As of November, UK Vimto sales were up nine percent year-on-year.
The company said it was ready for the UK government’s sugar levy, with Vimto and its Feel Good fruit drinks already below the required threshold.
The levy places a limit on the amount of sugar that soft drinks in the UK can contain, and it is due to come into force next April.
Nichols will be posting the group’s preliminary results on March 1, 2018.
Vimto maker cautions on Mideast sales
Vimto maker cautions on Mideast sales
Post-break return of students drives surge in education spending, SAMA data shows
RIYADH: Spending on education in Saudi Arabia increased by 141.1 percent for the week ending Jan. 24, as students returned to the classroom after the mid-year break.
This was accompanied by a 7 percent increase in spending on books and stationery, which reached SR146.17 million ($38.9 million).
According to the latest data from the Saudi Central Bank, the over POS value dropped 10.6 percent to SR12.52 billion, with transactions representing a 9.7 percent week-on-week decrease to 213.62 million.
This week saw negative changes across all the remaining sectors. Spending on bakeries and pastries saw an 18.4 percent decline to SR229.71 million, while gas stations saw an 11 percent drop. Professional and business services decreased by 11.6 percent.
Expenditure on apparel and clothing fell by 19.7 percent to SR985.94 million, followed by a 2.8 percent drop in spending on jewelry.
Spending on car rentals in the Kingdom fell by 14.7 percent, while airlines saw a 9.3 percent decrease to SR38.16 million.
Expenditure on food and beverages saw a 7.9 percent decline to SR1.88 billion, claiming the largest share of the POS. Restaurants and cafes retained the second position despite an 18.5 percent decrease to SR1.50 billion.
Geographically, Riyadh accounted for the largest share of total POS spending, but still saw a 6 percent dip to SR4.46 billion, down from SR4.74 billion the previous week. The number of transactions in the capital settled at 69.07 million, down 6.8 percent week on week.
In Jeddah, transaction values decreased by 13.6 percent to SR1.75 billion, while Dammam reported a 4.8 percent decrease to SR640.59 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with the Kingdom’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
