Supreme Plc · LSE:SUP
Supreme — H1 FY2025 Earnings Presentation
22 slides from Supreme's earnings presentation, November 2024
Slide 1: Results for the six months ended 30th September 2024
BATTERIES LIGHTING Results for the six months ended 30th September VAPING 2024 November 2024 SPORTS NUTRITION & WELLNESS DRINKS BRANDED DISTRIBUTION
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Supreme plc (“Supreme” accepts any liability to any person in relation to the distribution or Past performance is no guide to future performance. If you are or the “Company”) and the information contained herein is possession of these presentation sl
Slide 3: Meet The Team
Meet The Team Sandy Suzanne Luc David Mike Dan Chadha Smith Badain Neilson Holliday Clark • The Executive Team is supported by Divisional (product) leaders. • Each has deep sector and industry knowledge and experience. • Wholly responsible for their own category. • Over 100 years’ service for Suprem
Slide 4: Supreme At A Glance
Supreme At A Glance • Supreme is a manufacturer, licensee, brand owner and distributor of branded, ‘value’ staple consumer goods sold principally to UK high street discount retailers and supermarkets. • Our products are high-repeat, non- discretionary purchases and principally in the following categ
Slide 5: Vertically Integrated Platform
Vertically Integrated Platform Offers a seamless route to market for both owned and other leading brands NEW PRODUCTS • Both developed in-house by Supreme alongside new third-party launches. BRANDS • Own brand and licensed brands. • Distribution agreements. Licencing Bespoke Marketing Design R&D pac
Slide 6: Financial Highlights
Financial Highlights Strong increase in profitability • Revenue up 8% to £113.0m. • 22% increase in Adjusted EBITDA1 to £18.5m. • Adjusted pre-tax profit up 25% to £14.7m. • Interim dividend of 1.8 pence per share declared. • £15.6m acquisition financed entirely from the Company’s own cash reserves.
Slide 7: Operational Highlights
Operational Highlights A strong group performance • Acquired Clearly Drinks, a leading UK manufacturer and brand owner of specialised canned and bottled-at-source spring water and soft drinks, for £15.6m. o Immediately earnings enhancing, providing cross-sell opportunities across Supreme’s network a
Slide 8: Vaping
Vaping High margin category £36.6m +1% 46% revenues ‘core’ sale growth gross margin % £82.8m £76.1m Core Vaping grew whilst • Continued to perform robustly even as consumers prepare to switch disposables reduced devices ahead of the forthcoming disposables ban. H1 FY24 H1 FY25 • The majority of reve
Slide 9: Evolving UK vaping landscape
Evolving UK vaping landscape Oct 2023 Supreme announced series of Oct 2026 proactive measures within the Oct 2024 Excise duty will be levied on ALL Group's owned-brand vaping vaping products from October Autumn Budget – confirmatory products to seek to mitigate 2026 at £2.20 per 10ml. statements in
Slide 10: Sports Nutrition & Wellness
Sports Nutrition & Wellness Buoyant product innovation pipeline +7% 3% increase in revenue gross margin increase £18.0m • Sci-MX brand continues to perform well, benefitting from targeted £16.7m £15.9m influencer and community marketing campaigns. £9.5m £8.9m • Buoyant product innovation pipeline, l
Slide 11: Lighting and Batteries
Lighting and Batteries Dependable revenue generation £8.1m £17.4m Lighting revenue Batteries revenue 43% 13% gross profit margin gross profit margin £15.9m £17.4m • Lighting and Batteries activities remain robust. £40.5m £39.5m £34.9m £34.4m • £31.3m Continue to experience solid demand across both d
Slide 12: Soft Drinks
Soft Drinks Diversifying the Supreme portfolio £7m £2m £3.5m revenues EBITDA for FY 2025 Annualised EBITDA • £15.6m acquisition of Clearly Drinks Ltd, a well-known brand owner and manufacturer of soft drinks and bottled-at-source spring water. • Brings non-vape annualised sales to >£100m. • Supreme
Slide 13: Branded Distribution
Branded Distribution Swift operationalisation £34.4M £31.6M £5.3M revenue from EflBar revenue gross profit & Lost Mary £34.4m £30.6m • Continued to experience strong sales traction for both ElfBar and Lost Mary across our UK retail footprint. • Contributed 92% of the division’s revenue in H1 2025. •
Slide 14: Ark, Trafford Park
Ark, Trafford Park Our New HQ and distribution center in a prime location Entered 15-year lease for Ark, Supreme’s new 167,000 1 sq ft principal warehouse and distribution centre. Operations streamlined as numerous 2 warehouses consolidated. State-of-the-art facilities and an enhanced 3 working envi
Slide 15: Financial Summary
QOBO WE scree Financial Summary
Slide 16: Income Statement
Income Statement H1 25 H1 24 % change ● 8% revenue growth driven by M&A plus growth in the core, £m £m offset by a reduction in disposable vape sales ahead of the Revenue 113.0 105.1 +8% ban Gross profit 34.1 28.5 +20% ● Gross profit % up from 27% to 30% due to the addition of Soft Gross profit marg
Slide 17: Segmental Breakdown
Segmental Breakdown H1 25 H1 24 % change £m £m Revenue ● Revenue growth reported in all categories excl. Vaping Batteries 17.4 15.9 +9% Lighting 8.1 7.5 +8% H1 25 H1 24 Change Vaping 36.6 42.1 -13% £m £m % Vaping Sports Nutrition & Wellness 9.5 8.9 +7% Core vaping (excl. disposables) 32.2 32.1 +1% B
Slide 18: Revenue bridge
Revenue bridge ODDO WG svrreme £120m £115m £7.0m £110m “£1.7m £105.1m £105m £100m £95m £90m H1 24 M&A Disposables Core business H1 25 18
Slide 19: Adjusted EBITDA Bridge
Adjusted EBITDA' Bridge QOBOWE scrreve £20m £19m £18m £17m £16m £15.2m £15m £14m £13m H1 24 M&A Gross margin gains Overheads H1 25
Slide 20: Balance Sheet
Balance Sheet H1 25 H1 24 £m £m ● Fixed asset increase due to Clearly Drinks acquisition (they have owned property and considerable plant & Fixed Assets machinery) Property, Plant & Equipment 28.1 21.8 Intangibles 19.3 14.4 ● Working capital largely unchanged overall year-on-year TOTAL 47.4 36.2 Wor
Slide 21: Cash Flow Statement
Cash Flow Statement H1 25 H1 24 ● Considerable levels of operating cash generated in the Period £m £m Adjusted EBITDA 18.5 15.2 ● Investment in working capital is “normal” for Supreme at this time of year given the seasonality of demand (last year was Movement in working cap (5.9) (11.8) unusually h
Slide 22: Summary & Outlook
Summary & Outlook On track to deliver ongoing operational and financial progress ● Expected to deliver another profitable and highly cash-generative year of growth, having upgraded forecasts to reflect the Board’s confidence by £3m, with market expectations now set to at least £40m Adjusted EBITDA1