Just Food

Daily Newsletter

26 September 2023

Daily Newsletter

Supreme paints upbeat outlook for annual revenue, profits

The Battle Bites protein bars owner “on track to deliver our strongest financial performance as a listed company”.

Supreme, the owner of the Sci-Mx sports nutrition brand, expects to deliver results “significantly ahead of market expectations”.

The UK-based FMCG business, which is engaged in the vaping, batteries and lighting categories, said adjusted EBITDA should now come in around £28-30m ($34.1m to $36.5m) for the year through March.

London-listed Supreme noted in a stock-exchange filing today (26 September) that market assumptions currently stand at £25.6m. Revenue to 31 March is anticipated at £195m to £205m.

Supreme’s new adjusted EDITDA target, if realised, would be an improvement of a minimum of 9.4% on the previous annual print of £19.4m, which represented a drop of 8% on the prior 12 months.

Meanwhile, revenue for the year to 31 March 2023 was £155.6m, an increase of 19%. The bottom-end of the 2024 fiscal year assumption presented today would mean an advance of at least 25%.

Last year’s profit before tax was down 11% at £14.4m but Supreme did not put forward a target for that metric today. However, the company said it posted “record profitable growth” in the first half of 2024.

Supreme, which also supplies the Battle Bites line of protein bars and the Millions vitamins range within its health and wellness business, said “we remain well-positioned to further expand our UK market footprint and capitalise on opportunities within our own, private label and third-party brands”.

Chairman Paul McDonald was set to say at Supreme’s annual general meeting today: “Supreme traded strongly in the year ended 31 March 2023, delivering significant growth within our vaping activities, alongside solid organic growth across our remaining categories.

“We have continued to build on this positive momentum in the first half of the current financial year and are delighted to report that we remain on track to deliver our strongest financial performance as a listed company.”

McDonald added: “The board remains pleased with the group's ongoing financial and operational strategic progress and believes we are ideally positioned to deliver on our medium- to long-term growth potential.”

Supreme’s shares were trading about 8% higher in London today at 107.25 pence before the midday point.

The dairy and soy food sector will see rising demand for lactose-/gluten-free products

GlobalData estimates that the global dairy & soy food sector will grow at a CAGR of 17% during 2022–27. The healthy eating trend has encouraged consumers to seek alternatives to traditional dairy products. Plant-based dairy alternatives are often perceived as healthier due to their lower saturated fat content. Moreover, increasing awareness about food allergies and intolerances, coupled with consumers’ interest in alternative diets, will drive manufacturers to launch lactose- and gluten-free products.