REG - Supreme PLC - Significant Vaping Distribution Appointment

SupremeAnnouncement

05/07/2023 07:15

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RNS Number : 9657E  Supreme PLC  05 July 2023

5 July 2023

Supreme plc

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

 

Significant Vaping Distribution Appointment

 

Supreme (AIM: SUP), a leading manufacturer, supplier, and brand owner of
fast-moving consumer products, announces that in June 2023 it was selected as
a master distributor for the UK's leading vaping brands, ElfBar and Lost Mary.

 

Management, following initial order volumes, currently expects to generate
£25 to £30 million of revenue and around £2 million of incremental Adjusted
EBITDA(1) for the year ended 31 March 2024 alongside an investment into
working capital to support growth.

 

The Company will supply ElfBar and Lost Mary products to some of the UK's
biggest retailers, including Tesco, Morrisons, One Stop and WHSmith Travel,
enabling the Group to develop cross-sell opportunities encompassing the entire
Supreme product range.

 

Supreme's market-leading presence within the UK vaping market and its
extensive distribution network alongside its established compliance,
governance and quality control capabilities, provides these brands with a
readymade blueprint for their UK distribution strategy going forward.

 

As also announced today as part of the Group's FY23 results, the Board now
expects trading for the year ended 31 March 2024 to be significantly ahead of
current consensus.(2)

 

The Company will continue to monitor sales in respect of this opportunity
closely and will report its performance separately from Supreme's existing
vaping category.

 

Sandy Chadha, Chief Executive Officer of Supreme, commented:

 

"We are delighted to have secured such a sizeable distribution appointment
which will allow our business to fully leverage its unique technical,
regulatory, compliance and quality assurance capabilities within the vaping
sector.

 

"We have seen a hugely positive response from both established and new
retailers who view Supreme as an ideal partner to supply these products across
the UK, and I look forward to updating our key stakeholders on our ongoing
progress for the remainder of the year."

 

 

(1)Adjusted EBITDA means operating profit before depreciation, amortisation
and Adjusted items (as defined in Note 7 of the financial statements).
Adjusted items include share-based payments charge, fair value movements on
non-hedge accounted derivatives and non-recurring item.

 

(2)Company compiled analyst consensus for the year ending 31 March 2024 prior
to the release of this announcement was revenue of £159 million and Adjusted
EBITDA(1) of £22.6 million.

 

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.

 

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

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