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Vape manufacturer Supreme is set to report annual results that are “comfortably ahead” of market expectations thanks to booming sales and acquisitions.
In a year-end trading update for the 12 months to 31 March 2023, the group now expected revenues of at least £150m, compared with £130.8m in the previous period, and adjusted EBITDA of £19.3m, slightly down year on year from £21.1m.
Supreme said in a short statement to the stock exchange this morning that it had performed “strongly” throughout the second half of the financial year, with organic growth across the core business and a boost from two vaping acquisitions in the first half.
The group is a manufacturer, supplier, and brand owner of fast-moving consumer products across five categories: batteries, lighting, vaping, sports nutrition & wellness and branded household consumer goods.
Its vaping category registered an “excellent performance” during the year, nearly doubling revenues from £43.5m in FY22 to about £75m in FY23.
This record performance, underpinned by the group’s core 88Vape brand, had been buoyed by a number of earnings enhancing acquisitions, alongside strong new customer momentum, increased market share on e-liquids and favourable market conditions, Supreme added.
The rest of the group remained profitable and “resilient”, with the lighting category showing “ongoing signs of recovery”.
“Last week, Supreme was encouraged to hear of the government’s continued support for vaping as the ‘the most effective’ smoking cessation tool and the launch of its national ‘swap to stop campaign’ where the government plans to provide vape starter kits to support one million adults to quit smoking over the next two years,” the group said.
“Supreme’s long-standing and overarching company strategy is to support a tobacco-free Great Britain by offering both credible and safer alternatives to nicotine consumption.”
Looking ahead, the group expected to maintain its strong growth trajectory and lifted its forecasts for the new financial year.
Shares in Supreme jumped 9.6% to 108p as markets opened today.
Morning update
The FTSE 100 has started the week positively yet again following its fourth weekly rise in a row. London’s blue-chip index is up 0.5% this morning to 7,910.57pts.
There is little in the way of company news to move shares in food and drink, but early risers include Hotel Chocolat, up 5.7% to 185p, Bakkavor, up 1.9% to 94.8p, and THG, up 1.5% to 67.1p.
McBride and Wynnstay Group are among the early fallers, down 1.4% to 30.3p and 1.2% to 452.3p respectively.
This week in the City
Newsflow picks up a little this week as the City moves on from Easter.
Tomorrow brings full-year results and a Q1 trading update from e-commerce operator THG.
All eyes will be on the latest UK inflation data as the ONS puts out the figures for March on Wednesday. Heineken and Just Eat Takeway will also release Q1 numbers on Wednesday.
WH Smith issues its interims on Thursday, alongside a first-quarter update from Deliveroo.
Friday morning sees GfK release its closely watched monthly consumer confidence index, with the ONS to release retail sales figures for March, while in the US, Procter & Gamble announce quarterly results.
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