REG - Science in Sport PLC - Trading Update

Science in SportAnnouncement

19/01/2022 07:05

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RNS Number : 8783Y  Science in Sport PLC  19 January 2022

19 January 2022

AIM: SIS

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET
ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").

 

 

Science in Sport plc

("Science in Sport", "the Company" or the "Group")

 

Pre-Close Trading Update and Notification of Final Results

 

Science in Sport, the premium performance nutrition company serving elite
athletes, sports enthusiasts and the active lifestyle community, is pleased to
announce a trading update for the financial year ended 31 December 2021.

 

Results Overview

 

The Group performed well during the year and ahead of expectations, delivering
an underlying EBITDA(1) of £2.2 million (FY 2020: profit of £1.1 million)
driven by revenue growth of 25% (FY 2020: nil) to £62.7m (FY 2020: £50.4m).

 

PhD Nutrition, a premium active lifestyle nutrition brand, grew by 19% to
£29.7m (FY20: £24.9m). SIS, a leading endurance nutrition brand among elite
athletes and professional sports teams, generated £33.0m, 30% ahead of the
previous year (FY 2020: £25.4m). Product innovation delivered 32% of revenue
growth.

 

Underlying EBITDA(1) increased to £2.2m, continuing the strong upward trend
(FY 2020: £1.1m) despite inflationary headwinds. Gross margin increased to
50% (FY 2020: 49%), driven by supply chain efficiencies, continued sales shift
to online, and pricing, more than offsetting commodity price increases.

 

The accelerated capital investment programme delivered a new customer data
platform, which improved revenue per visit to our digital platform by 8% from
installation in May to year-end. We invested in the first phase of the new
supply chain facility in Blackburn, scheduled to open in late Q1 2022, when we
expect immediate reductions in logistics costs.

 

Reflecting the accelerated investment, the Group's cash at bank on 31 December
2021 was £4.9m, in line with management expectations (31 December 2020:
£10.5m).

 

(1 )before interest, tax, depreciation, amortisation, share-based payments and
foreign exchange variance on intercompany balances

 

Online sales

 

Online sales rose strongly by 40% to £35.0m (FY 2020: £25.0m). Online sales
via the Group's digital platforms were up by 28% and 53% via third-party
marketplace sites.

 

The previous online monthly sales record was exceeded four times in the second
half, including setting a new sales record over peak November trading.

 

In the important market of the US, sales increased by 46%. PhD Japan which
launched in the first half performed ahead of plan in the second half.

 

Online sales accounted for 56% of total sales (FY 2020: 50%) and remain a
critical driver of ongoing growth.

 

Retail sales

 

Despite being adversely impacted by pandemic restrictions, UK retail sales
rose by 12% to £18.1m (FY 2020: £16.1m). International retail sales at
£9.7m were up by 4% (FY 2020: £9.3m). These results were after exiting over
60 sub-scale international accounts in late 2020 to focus on scale markets.

 

Date of publication of final results

 

The Board expects to publish final results on 16 March 2022, when it will
provide a further update on current trading.

 

Stephen Moon, CEO of Science in Sport plc, said:

 

"The Group has performed well and delivered profitable revenue growth. This
very encouraging performance reflects the strength of our premium brands which
continue to drive strong underlying EBITDA growth."

 

"Growth is across all channels and key markets, especially online. Online
sales increased by 40% and now account for 56% of total sales, up from 50% a
year ago, underpinned by our increased investment in technology. Retail sales
grew consistently over the year both in the UK and internationally."

 

"Prospects for further progress in 2022 look strong, and our long-term growth
strategy remains unchanged."

 

 

 Science in Sport plc                                T: 020 7400 3700
 Stephen Moon, CEO
 James Simpson, CFO

 Liberum (Nominated adviser and broker)              T: 020 3100 2000
 Richard Lindley, James Greenwood, Will Hall

 Davy (Joint broker)                                 T: 020 7448 8871

 Graham Hertrich, Sonya Vidiartkhi, Marco Schwartz

 

About Science in Sport plc

www.sisplc.com (http://www.sisplc.com)

 

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, forecast to be £13 billion worldwide by 2023.

 

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 fitness influencers Ross Edgley and Obi Vincent.

 

SiS, founded in 1992, has a core range comprising gels, powders and bars
focused on energy, hydration and recovery. SiS is an official sports nutrition
supplier to over 330 professional teams, organisations and national teams
worldwide, including INEOS Grenadiers Cycling Team. SiS supplies more than 150
professional football clubs in the UK, Europe and the USA. SiS is
Performance Research Partner to the English Football Association and Official
Vitamins and Supplements Partner to the Milwaukee Bucks, 2021 National
Basketball Association Champions.

 

For further information, please visit phd.com and scienceinsport.com

 

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