UK's Supreme hits over 1-yr high on upbeat outlook
05/07/2023 09:31
** Shares of Supreme Plc SUP.L climb as much as 12.9% to
118p, their highest since July 4, 2022
** The manufacturer and supplier of fast-moving consumer
products sees FY24 trading to be "significantly ahead" of
current consensus, partly helped by a new distribution contract
for vaping brands ElfBar and Lost Mary
** Sees FY24 adjusted core profit to be ahead of latest
expectations by at least 1 mln pounds ($1.27 mln)
** Co expects to generate 25 mln-30 mln pounds of revenue
and around 2 mln pounds of incremental adjusted core profit for
FY24 from vaping distribution agreement
** SUP says it will supply ElfBar and Lost Mary products to
some of the UK's biggest retailers, including Tesco TSCO.L ,
Morrisons, One Stop and WHSmith Travel
** Berenberg analysts in a note say the distribution
agreement should provide the opportunity for Supreme to
cross-sell its additional products to sizeable retailers
** Berenberg raises target price on stock to 190p from 170p
** Stock currently up 11.5%, taking YTD gains to ~18%
($1 = 0.7875 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru)
((abyjose.koilparambil@thomsonreuters.com))