Year-to-date, Supreme’s (SUP:AIM) shares have surged more than 60% to 173p on the back of forecast upgrades and positive strategic progress from the fast-moving consumer products supplier guided by entrepreneurial chief executive Sandy Chadha.

Record results (2 July) for the year to 31 March from the Manchester-based vapes-to-batteries supplier met previously upgraded guidance, with adjusted pre-tax profit doubling to £30.7 million on total revenue up 42% to £221.2 million.

Growth was driven by new distribution deals, while sales were reassuringly ahead in all categories including vaping, lighting, batteries, sports nutrition and wellness. Cash-generative Supreme, whose customers includew Tesco (TSCO),  B&M European Value Retail (BME), Morrisons and Asda, recently added some fizz to its growth story through the £15 million acquisition of Clearly Drinks, the Perfectly Clear-to-Northumbria Spring owner which brings the complementary soft drinks category into the product portfolio.

Despite completing seven acquisitions and returning £16 million-plus to investors over the past four years, the company is now bank debt free with the firepower for further earnings-enhancing acquisitions. 

Supreme also delivered an upbeat outlook statement, with 2025 expected to be another profitable and highly cash-generative year and a positive start to the first quarter leaving the company trading ‘comfortably’ in line with consensus.

Having announced numerous proactive measures to combat underage vaping, Supreme expects trading for its vaping and branded distribution divisions will be ‘largely unaffected’ by the UK government’s proposed disposable vape ban. 

‹ Previous2024-07-11Next ›