City round-up: Supreme; Nichols

Stretford vaping company, Supreme, has delivered a record financial performance for the year to March 31, 2024, it revealed today.

Audited results will be published on July 2, but in a trading update this morning, it said the group has almost doubled profitability year on year and generated record levels of cash, ending the year debt-free.

It said the achievements were driven by organic revenue and profit growth across all divisions.

Supreme expects to report FY24 revenue of around £225m (FY23: £155.6m) and Adjusted EBITDA of at least £38m (FY23: £19.4m), in-line with current market expectations.

Analyst consensus immediately before this announcement was revenue of £225m and Adjusted EBITDA of £38m.

Supreme’s continued investment in rechargeable pod system vaping devices, coupled with its long standing progress in developing a uniquely diverse vape product mix, has ensured it is well positioned to adapt to changes in the UK e-cigarette market.

Alongside an ongoing focus on accelerating organic growth and strategic cross-selling, the company said it remains committed to exploring complementary acquisition opportunities to further diversify and scale the business.

The group’s Sports Nutrition & Wellness, Lighting and Batteries divisions remain profitable and resilient, and Supreme will provide further detail on the trading activity across each of its divisions in its final results announcement.

The board said it remains confident of the group’s future prospects.

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Nichols known for Vimto

Nichols, the Newton-le-Willows-based soft drinks group, which includes the iconic Vimto brand, said trading in the first quarter of the year is in line with management expectations.

The business, which will hold its annual general meeting later today, issued an update for the three months to March 31, 2024, which revealed strong growth in the UK Packaged business, which was offset by an anticipated decline in International revenue due to the phasing of shipments and strong prior year comparatives, as well as the continued successful rationalisation and focus on profitability in the Out of Home (OoH) business.

As a result, group revenue decreased 5.9% year-on-year to £38.8m.

UK Packaged revenues increased by 6.8% to £20.4m, driven by an underlying volume increase of 4.4% over the period. The Vimto brand continued to grow in value, largely reflecting new product innovation and increased distribution.

International Packaged revenues decreased by 23% to £9.8m, reflecting the timing of shipments into the Middle East and reduced volumes in Africa, which benefited from one-off launch volumes into Ivory Coast during the same period last year.

The group continues to expect the International business to deliver profitable growth across the full year.

In line with the strategic plan, OoH revenues declined by 6.2% to £8.6m, reflecting the withdrawal from unprofitable accounts in the second half of fiscal year 2023. The OoH business continues to show improved profitability as the benefits of the strategic review are realised.

Cash and cash equivalents at the end of the reporting period were £73m, compared with £67m at December 31, 2023.

The board said it remains confident that the group, underpinned by the strength of the Vimto brand and the group’s diversified international business model, is well placed to deliver profitable growth in the coming year and achieve its long term strategic ambitions.

The group’s adjusted profit before tax, excluding exceptional items, expectations for 2024 remain unchanged from a group-compiled market consensus of £28.8m.