TIDMSUP
RNS Number : 5984N
Supreme PLC
26 September 2023
26 September 2023
Supreme plc
("Supreme," the "Company" or the "Group")
AGM Trading Statement
Trading for FY 2024 now expected to be significantly ahead of
market expectations (1)
Supreme (AIM:SUP), a leading manufacturer, supplier, and brand
owner of fast-moving consumer products, provides an update ahead of
its Annual General Meeting ("AGM") at 8.00 a.m. today.
At the meeting, Paul McDonald, Chairman of Supreme, will make
the following statement:
"Supreme traded strongly in the year ended 31 March 2023,
delivering significant growth within our vaping activities,
alongside solid organic growth across our remaining categories. We
have continued to build on this positive momentum in the first half
of the current financial year ("H1 2024") and are delighted to
report that we remain on track to deliver our strongest financial
performance as a listed company.
Supreme operates across an extensive customer network within the
UK retail space, and, after broadening our already diverse product
portfolio and investing in strategic brands, we remain
well-positioned to further expand our UK market footprint and
capitalise on opportunities within our own, private label and
third-party brands.
Following record profitable growth in H1 2024, the Company now
expects trading for the year ended 31 March 2024 ("FY 2024") to be
significantly ahead of market expectations(1) with revenue guidance
of around GBP195 - GBP205 million and Adjusted EBITDA(2) guidance
of approximately GBP28 - 30 million, an increase of GBP3.5 million
compared to the market expectations(1) , with around GBP2 million
of the incremental Adjusted EBITDA(2) arising from the Elf
opportunity and around GBP1.5 million incremental Adjusted
EBITDA(2) arising from the core business. In addition, the
investment into working capital to support the Elf opportunity has
been managed better than expected and as a result the Company now
expects a stronger cash position at half year and year end than
initially anticipated.
Management now anticipates the contribution of the distribution
of Elf and Lost Mary brands across FY 2024, based on current
legislation, will be around GBP4 million of Adjusted EBITDA(2) from
around GBP40 million of revenue(3) .
In addition, the continued expansion of our Vaping category
remains a key growth driver for Supreme and we continue to attract
significant demand for our vaping products from key retailers, with
demand across our principal 88Vape brand particularly strong. This
increased demand combined with improved margins in our Wellness and
Vaping category plus further synergistic overheads savings arising
from the businesses acquired in FY23 have led to an increase in the
full year Adjusted EBITDA(2) expectation for the core business of
around GBP1.5 million.
As an industry leader, Supreme acknowledges the wider concerns
of youth vaping and remains fully supportive of any proactive
measures or changes in legislation that potentially restricts
specific products, packaging, flavours or point of sale in the
UK.
Operationally, we have commenced activities from our new
warehousing facility which has already enhanced our distribution
and storage, further supporting both our organic and acquisitive
growth ambitions.
The Board remains pleased with the Group's ongoing financial and
operational strategic progress and believes we are ideally
positioned to deliver on our medium to long term growth
potential."
(1) Company compiled analyst consensus for the year ending 31
March 2024 prior to release of this announcement was Adjusted
EBITDA of GBP25.6 million.
(2) Adjusted EBITDA means operating profit before depreciation,
amortisation, share-based payments charge, fair value movements on
non-hedge accounted derivatives and exceptional items.
(3) Previous guidance for the Elf opportunity was GBP25 - 30
million of revenue and around GBP2m of Adjusted EBITDA (2) .
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.
investors.supreme.co.uk/
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END
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September 26, 2023 02:00 ET (06:00 GMT)
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