Supreme PLC
LSE:SUP
Supreme PLC
Supreme Plc engages in the manufacture and supply of branded and licensed consumer batteries. The firm supplies products across five product categories: batteries, lighting, vaping, sports nutrition & wellness and branded household consumer goods. The company provides white label batteries to a United Kingdom (UK) supermarket. Its lighting category distributes a range of products to the retail and trade markets, including light-emitting diode (LED) lightbulbs, internal and external light fittings and smart lighting. The company offers vaping products that use a battery powered device to heat an e-liquid solution to create a vapor containing propylene glycol, vegetable glycerin and flavorings, with or without nicotine, which are designed to be in haled. 88Vape is the Company's primary vaping brand. Its sports nutrition & wellness category includes own brands, in addition to contract manufacturing a range of protein powders, snacks and drinks. The company supplies a range of branded household consumer goods.
Supreme Plc engages in the manufacture and supply of branded and licensed consumer batteries. The firm supplies products across five product categories: batteries, lighting, vaping, sports nutrition & wellness and branded household consumer goods. The company provides white label batteries to a United Kingdom (UK) supermarket. Its lighting category distributes a range of products to the retail and trade markets, including light-emitting diode (LED) lightbulbs, internal and external light fittings and smart lighting. The company offers vaping products that use a battery powered device to heat an e-liquid solution to create a vapor containing propylene glycol, vegetable glycerin and flavorings, with or without nicotine, which are designed to be in haled. 88Vape is the Company's primary vaping brand. Its sports nutrition & wellness category includes own brands, in addition to contract manufacturing a range of protein powders, snacks and drinks. The company supplies a range of branded household consumer goods.
Revenue Growth: Supreme reported a 17% increase in revenue, up GBP 20 million year-on-year for the first half, despite a tough retail environment.
Acquisition Impact: Acquisitions contributed GBP 15 million of revenue growth, with Clearly Drinks and Typhoo as major drivers. SlimFast and 1001 were acquired post-period and are expected to add GBP 30 million annualized revenue.
Profitability: Gross profit rose 13%, while EBITDA was flat at GBP 18.5 million, reflecting higher overheads from acquisitions and investments.
Vaping Transition: The move from disposable to pod vapes after the ban was smoother and more profitable than expected, though gross margins on pods are lower than disposables.
Diversification: The business is now less reliant on vaping, with only about half of revenue from the category, down from 70–75% two years ago.
Decline in Electricals: Lighting and batteries revenue declined, with lighting prices down and Panasonic exiting the battery market, but diversification has reduced overall impact.
Innovation & CapEx: Significant investments in new products and manufacturing capacity (especially for wellness and drinks) will slow going forward, with normalized CapEx expected to be GBP 1.5–2 million per year.
Guidance: October and November trading was strong, and management expects to end the year bank debt-free and net cash neutral despite recent acquisitions.
