Vaping boosts revenues for consumer goods manufacturer Supreme
Consumer goods manufacturer Supreme has reported a 30 per cent jump in revenues boosted by customer demand for vaping products.
The Trafford Park firm said it ‘remained confident of future growth’ as it gave its first trading update since joining the London Stock Exchange in February.
The company manufactures and imports vaping products, batteries, lighting and sports nutrition products, working with retailers that include B&M, Poundland and The Range.
Supreme said it ‘performed strongly throughout the period’, generating high levels of demand across all its categories.
It said its extensive retail network included 3,300 active accounts across wholesale, discount, supermarket, high street, international and public sector customers, in addition to 70,000 active online accounts.
For the year ended 31 March 2021, Supreme said it expects to report a 30 per cent increase in revenues to at least £121m, up from £92.3m in 2020.
Adjusted EBITDA is slightly ahead of expectations of at least £19m, up from £16.2m in the previous year.
Supreme remains highly cash generative, with net debt at 31 March 2021 of approximately £5.1m, reduced from £18.7m.
The group said revenues benefitted from an uplift in Vaping and Sports Nutrition & Wellness during the year, delivering a 35 per cent increase in revenues in its Vaping division with its 88Vape.
Its Sports Nutrition & Wellness category delivered 38 per cent growth underpinned by the success of the acquisition of Battle Bites protein snack bars in October 2020.
Sandy Chadha, CEO of Supreme, said: “I am delighted to provide our first trading update since our AIM admission in February 2021. We continue to build on our strong track record of growth, with our strategy to focus on high growth categories such as vaping and sports nutrition really coming to fruition.
“Innovation and entrepreneurship continue to be at the heart of what we do and our exciting pipeline of new products, coupled with the potential to increase the penetration of our existing categories, continues to be underpinned by our market leading distribution network.
“The new financial year has started well and we are looking ahead with confidence on delivering on our expectations.”