December 23, 2019 / 7:38 AM / 2 months ago

Vimto maker Nichols warns of lower 2020 profit on Saudi, UAE tax

Dec 23 (Reuters) - Vimto soft drinks maker Nichols on Monday warned its full-year 2020 pretax profit could be materially below current expectations, citing an excise tax on non-carbonated sweetened drinks in Saudi Arabia and the United Arab Emirates.

The company said it may have to increase retail prices of its drinks to offset the 50% excise tax and that in turn could affect its 2020 performance.

Nichols added that since the tax will be applied on non-carbonated drinks with either natural or artificial sweeteners, product reformulation is not an option. (Reporting by Tanishaa Nadkar in Bengaluru Editing by Saumyadeb Chakrabarty)

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