Popularity of vaping a key growth driver at Supreme
The popularity of vaping has lifted trading at AIM listed Supreme, the manufacturer, supplier, and brand owner of fast-moving consumer products.
Paul McDonald, Chairman of Supreme, will make the following statement at the company’s AGM this morning: “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 expectation for the core business of around £1.5 million.”
However, he said he acknowledged the wider concerns of youth vaping and remained “fully supportive of any proactive measures or changes in legislation” that potentially restricts specific products, packaging, flavours or point of sale in the UK.
He went on to say: “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.
“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 supplies convenience stores and independent retailers with a diverse range of products.
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 expectations1 with revenue guidance of around £195 – £205 million.
