Sports nutrition business Science in Sport claims its corporate reset is now “well underway” after revenues finally picked up in the second half of the year.
The owner of the SIS and PhD brands saw revenues grow 1.9% in the second half of the year, compared with the first, though the poor performance up to June meant annual sales were still down 17.5% to £51.9m for the year to 31 December.
Profitability was up 10% to £2.2m in the second half of the year.
The London-listed company expected growth to continue into next year, when it should also benefit from the full effects of the cost savings made in 2024.
Under a new leadership, the business has stopped focusing on topline growth across all channels and markets so it can focus on key growth opportunities.
“The reset of the operating model undertaken by the new leadership team is now well underway and is underpinning the improved performance,” the company said.
“A return to growth marks a major inflection point,” said Panmure Liberum analyst Wayne Brown. “The significant pivot away from uncommercial relationships means the quality of revenues have improved and so too the efficiency of marketing on the other.”
Science in Sport is now targeting new distribution across the US, Europe and Asia. This is expected to be key to driving growth next year.
The business struggled in the first half of the year due to product shortages and this stifled revenue, said Brown, adding this issue had now been largely resolved.
Shares are up 4.4% today to 26.1p, with the stock having climbed 80% over the past year after crashing to lows of 7p in 2023.
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