REG - Supreme PLC - AGM Trading Statement

SupremeAnnouncement

26/09/2023 07:00

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RNS Number : 5984N  Supreme PLC  26 September 2023

26 September 2023

 

Supreme plc

("Supreme," the "Company" or the "Group")

 

AGM Trading Statement

 

Trading for FY 2024 now expected to be significantly ahead of market
expectations(1)

 

Supreme (AIM:SUP), a leading manufacturer, supplier, and brand owner of
fast-moving consumer products, provides an update ahead of its Annual General
Meeting ("AGM") at 8.00 a.m. today.

 

At the meeting, Paul McDonald, Chairman of Supreme, will make the following
statement:

 

"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 operates across an extensive customer network within the UK retail
space, and, after broadening our already diverse product portfolio and
investing in strategic brands, we remain well-positioned to further expand our
UK market footprint and capitalise on opportunities within our own, private
label and third-party brands.

 

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 expectations(1) with revenue guidance of around £195 - £205 million
and Adjusted EBITDA(2) guidance of approximately £28 - 30 million, an
increase of £3.5 million compared to the market expectations(1), with around
£2 million of the incremental Adjusted EBITDA(2) arising from the Elf
opportunity and around £1.5 million incremental Adjusted EBITDA(2) arising
from the core business. In addition, the investment into working capital to
support the Elf opportunity has been managed better than expected and as a
result the Company now expects a stronger cash position at half year and year
end than initially anticipated.

 

Management now anticipates the contribution of the distribution of Elf and
Lost Mary brands across FY 2024, based on current legislation, will be around
£4 million of Adjusted EBITDA(2) from around £40 million of revenue(3).

 

In addition, 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(2) expectation for the core business of
around £1.5 million.

 

As an industry leader, Supreme acknowledges the wider concerns of youth vaping
and remains fully supportive of any proactive measures or changes in
legislation that potentially restricts specific products, packaging, flavours
or point of sale in the UK.

 

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.

 

The Board remains pleased with the Group's ongoing financial and operational
strategic progress and believes we are ideally positioned to deliver on our
medium to long term growth potential."

 

(1              )Company compiled analyst consensus for the year
ending 31 March 2024 prior to release of this announcement was Adjusted EBITDA
of £25.6 million.

(2)(              )Adjusted EBITDA means operating profit before
depreciation, amortisation, share-based payments charge, fair value movements
on non-hedge accounted derivatives and exceptional items.

(3)(              )Previous guidance for the Elf opportunity was
£25 - 30 million of revenue and around £2m of Adjusted EBITDA(2).

 

Enquiries:

 

 Supreme plc                                            via Vigo Consulting

 Sandy Chadha, Chief Executive Officer

 Suzanne Smith, Chief Finance Officer

 Grant Thornton UK LLP (Nominated Adviser)              +44 (0)20 7383 5100

 Samantha Harrison / Harrison Clarke / Samuel Littler

 Berenberg (Broker)                                     +44 (0)20 3207 7800

 Mark Whitmore / Marie Moy / Mara Grasso

 Vigo Consulting (Financial Public Relations)           +44 (0)20 7390 0230

 Jeremy Garcia / Kendall Hill

 supreme@vigoconsulting.com

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014 which is part of UK law by virtue of the European Union (withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

About Supreme

 

Supreme supplies products across five key categories; batteries, lighting,
vaping, sports nutrition & wellness, and branded household consumer goods.
The Company's capabilities span from product development and manufacturing
through to its extensive retail distribution network and direct to consumer
capabilities. This vertically integrated platform provides an excellent route
to market for well-known brands and products.

 

The Group has over 3,300 active business accounts with retail customers who
manage over 10,000 branded retail outlets. Customers include B&M, Home
Bargains, Poundland, Tesco, Sainsburys, Morrisons, Amazon, The Range,
Costcutter, Asda, Halfords, Iceland and HM Prison & Probation Service.

 

In addition to distributing globally-recognised brands such as Duracell,
Energizer and Panasonic, and supplying lighting products exclusively under the
Energizer, Eveready, Black & Decker and JCB licences across 45 countries,
Supreme has also developed brands in-house, most notably 88Vape and has a
growing footprint in Sports Nutrition and Wellness via its principal brands
Sci-MX and Battle Bites.

 

investors.supreme.co.uk/ (https://investors.supreme.co.uk/)

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