Pre-Close Trading Update
22/02/2023 07:00
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RNS Number : 6228Q Science in Sport PLC 22 February 2023
Science in Sport plc
("Science in Sport", "the Company" or the "Group")
Pre-Close Trading Update
Science in Sport, the premium performance nutrition company serving elite
athletes, sports enthusiasts, and the active lifestyle community, is pleased
to announce a pre-close trading update for the financial year ended 31
December 2022.
Trading
Against the tough economic and supply chain environment throughout the year,
the Group performed broadly in-line with expectations. Group revenue growth of
1.5% to £63.5m (FY2021: £62.7m) was achieved.
A stronger margin performance in H2 due to the new Blackburn site delivering
significant logistics efficiencies, coupled with the delivery of sustainable
cost savings across the business, delivered margins in line with expectations.
This world-class asset is planned to be the bedrock of further improvements
and strategic advantage in the global sports nutrition sector from 2023
onwards.
Operational Developments
We have executed a wide-ranging restructuring of the business, including
strategic investment, setting ourselves up for success in 2023 and beyond -
· A state-of-the-art protein bar line has been commissioned this month
in Blackburn and is fully operational. This asset eliminates proposed
substantial 2023 co-manufacturing cost increases and will contribute
significantly to profitability. In addition to a transformation in margin, the
new line underpins major innovation projects which are expected to deliver
incremental revenue in 2023.
· Our USA business this month transferred to The Feed, the leading
online distributor of endurance nutrition brands in the region. As well as
accessing our core consumer market, the deal results in a strong improvement
in expected cash generation for 2023.
· A strategic partnership has been agreed for our already strong
Marketplace business with Flywheel Digital, the global leader in Amazon growth
delivery. 2023 sales to consumer are showing good growth, and we expect to see
outperformance from March because of the new partnership.
· People costs for 2022 were significantly under budget and we expect
to hold this cost flat in 2023, despite wage inflation. 2023 will also see a
solid reduction in overheads versus 2022. Capital expenditure will be at an
all-time low, given we have exited the strategic investment phase in supply
chain and technology.
Outlook
Management is optimistic about the prospects for 2023. Macro factors including
COVID-19 in China and Amazon global inventory reduction are alleviating.
Retail in all regions is in line with our expectations for growth, and the UK
had a strong start to the year. Margins are strongly improved due to
initiatives including the above items, and a second wave of price increases
beginning to contribute.
For further information:
Science in Sport plc T: 020 7400 3700
Stephen Moon, CEO
Daniel Lampard, CFO
Liberum (Nominated Adviser and Broker) T: 020 3100 2000
Richard Lindley
William Hall
Lucas Bamber
Notes to Editors:
About Science in Sport plc
Headquartered in London, Science in Sport plc is a leading sports nutrition
business that develops, manufactures, and markets innovative nutrition
products for professional athletes, sports and fitness enthusiasts and the
active lifestyle community. The Company has two highly regarded brands, PhD
Nutrition, a premium active-nutrition brand targeting the active lifestyle
community, and SiS, a leading endurance nutrition brand among elite athletes
and professional sports teams.
The two brands sell through the Company's phd.com and scienceinsport.com
digital platforms, third-party online sites, including Amazon and Tmall, and
extensive retail distribution in the UK and internationally, including major
supermarkets, high street chains and specialist sports retailers. This
omnichannel footprint enables the Company to address the full breadth of the
sports nutrition market, worth $42.9bn in 2022 and forecast to grow CAGR 7.4%
from 2023 to 2030.(1)
PhD is one of the UK's leading active nutrition brands with a reputation for
high quality and product innovation. The brand has grown rapidly since its
launch in 2005. The range now comprises powders, bars, and supplements,
including the high protein, low sugar range, PhD Smart. PhD brand ambassadors
include leading endurance and strength athlete Ross Edgley and influencer
Gabby Allen.
SiS, a leading endurance nutrition business founded in 1992, has a core range
comprising gels, powders and bars focused on energy, hydration, and recovery.
SiS is an official endurance nutrition supplier to over 320 professional
teams, organisations, and national teams worldwide. SiS supplies more than 150
professional football clubs in the UK, Europe, and the USA.
SiS is Performance Solutions partner to Ineos Grenadiers cycling team, and
Tottenham Hotspur and CGC Nice football clubs, as well as Official Nutrition
Partner to the Milwaukee Bucks, 2021 National Basketball Association
Champions. We provide our Performance Solutions service to Gotytom
Gebreslase, the World Champion women's marathon runner.
For further information, please visit phd.com and scienceinsport.com
(1 )Grand View Research (2022)
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