TIDMSUP
RNS Number : 3462W
Supreme PLC
17 April 2023
17 April 2023
Supreme plc
("Supreme," the "Company" or the "Group")
(AIM: SUP)
Year End Trading Update
Trading for FY23 ahead of consensus expectations (2) , driven by
organic and acquisitive growth
The Company now anticipates trading in FY24 will be slightly
ahead of current consensus expectations (3) .
The Board of Supreme, a leading manufacturer, supplier, and
brand owner of fast-moving consumer products, is delighted to
announce a trading update for the twelve months ended 31 March 2023
("FY23"). Results for the period will be announced on Wednesday 5
July 2023.
Supreme has performed strongly throughout the second half of
FY23, delivering organic growth across its core business,
supplemented by the earnings from the two vaping acquisitions
completed in the first half of the year.
The Company expects to report FY23 revenue of at least GBP150
million (2022: GBP130.8 million) and Adjusted EBITDA(1) of at least
GBP19.3 million (2022: GBP21.1 million), comfortably ahead of
current market expectations(2) .
The Group's Vaping category has delivered another excellent
performance, nearly doubling revenues from GBP43.5 million in FY22
to around GBP75.0 million in FY23. This record performance,
underpinned by the Group's core 88Vape brand, has been buoyed by a
number of earnings accretive acquisitions in the period, alongside
strong new customer momentum, increased market share on e-liquids
and favourable market conditions.
The remainder of the Group remains profitable and resilient with
the Lighting category showing ongoing signs of recovery.
The Company expects bank borrowings net of cash to be neutral as
at 31 March 2023, a reduction of GBP12.9 million since the half
year, a reminder of the highly cash-generative nature of the
Supreme platform.
Last week, Supreme was encouraged to hear of the Government's
continued support for Vaping as the "the most effective" smoking
cessation tool and the launch of its national "swap to stop
campaign" where the government plans to provide vape starter kits
to support one million adults to quit smoking over the next two
years. Supreme's long-standing and overarching company strategy is
to support a tobacco-free Great Britain by offering both credible
and safer alternatives to nicotine consumption.
Outlook
Looking at FY24, the Group expects to maintain its strong growth
trajectory, delivering another strong year of profitable growth.
The Group now expects trading for the year ended 31 March 2024 to
be slightly ahead of current market expectations (3) .
The Board remains confident that the Group will continue to
deliver both organic and acquisition led growth this financial year
and beyond.
(1) Adjusted EBITDA means operating profit before depreciation,
amortisation, share-based payments charge, fair value movements on
non-hedge accounted derivatives and exceptional items (including
IPO-related costs).
(2) Company compiled analyst consensus for the year ending 31
March 2023 prior to release of this announcement were revenues of
GBP 138 million and Adjusted EBITDA of GBP 18.5 million.
(3) Company compiled analyst consensus for the year ending 31
March 2024 prior to release of this announcement were revenues of
GBP 150.5 million and Adjusted EBITDA of GBP 22.2 million.
Enquiries:
Supreme plc via Vigo Consulting
Sandy Chadha, Chief Executive Officer
Suzanne Smith, Chief Finance Officer
Grant Thornton UK LLP (Nominated Adviser)
Samantha Harrison / Harrison Clarke / Samuel
Littler +44 (0)20 7383 5100
Berenberg (Broker)
Mark Whitmore / Marie Moy / Mara Grasso +44 (0)20 3207 7800
Vigo Consulting (Financial Public Relations)
Jeremy Garcia / Kendall Hill
supreme@vigoconsulting.com +44 (0)20 7390 0230
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014 which is part of UK law by virtue of
the European Union (withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
About Supreme
Supreme supplies products across five key categories; batteries,
lighting, vaping, sports nutrition & wellness, and branded
household consumer goods. The Company's capabilities span from
product development and manufacturing through to its extensive
retail distribution network and direct to consumer capabilities.
This vertically integrated platform provides an excellent route to
market for well-known brands and products.
The Group has over 3,300 active business accounts with retail
customers who manage over 10,000 branded retail outlets. Customers
include B&M, Home Bargains, Poundland, Tesco, Sainsburys,
Morrisons, Amazon, The Range, Costcutter, Asda, Halfords, Iceland
and HM Prison & Probation Service.
In addition to distributing globally-recognised brands such as
Duracell, Energizer and Panasonic, and supplying lighting products
exclusively under the Energizer, Eveready, Black & Decker and
JCB licences across 45 countries, Supreme has also developed brands
in-house, most notably 88Vape and has a growing footprint in Sports
Nutrition and Wellness via its principal brands Sci-MX and Battle
Bites.
www.investors.supreme.co.uk
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END
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