Supreme reports strong growth and resilience in vaping amid market shifts
November 27, 2024
Supreme plc, a leading manufacturer and distributor of consumer goods, has reported strong financial performance for the half-year ended 30 September,
The company recorded an 8 per cent increase in revenue, reaching £113 million compared to £105.1m in the same period last year. Adjusted EBITDA rose 22 per cent to £18.5m, reflecting higher gross margins and tight overhead control.
Despite challenges in the vaping market, the company continues to demonstrate resilience, particularly in its non-disposable vaping products.
Revenue in the vaping category stood at £36.6m, a 13 per cent decline from £42.1m in the previous year, largely due to a strategic de-emphasis on disposable vapes ahead of the forthcoming ban in June 2025. Sales of disposables fell by 56 per cent, to £4.4m, while revenues from non-disposable products remained stable at £32.2 million.
Supreme has shifted focus to rechargeable pod systems, 10ml e-liquid refills, and nicotine pouches under its 88Nic brand. These initiatives align with the anticipated regulatory changes and reinforce Supreme’s long-term commitment to supporting vaping as a smoking cessation tool.
“The strength of our strategy and the proactivity of our teams means we are well-positioned for upcoming changes in the UK vaping sector. Non-disposable vapes account for the majority of our vaping revenue, and we continue to report growth in 10ml e-liquid refills,” said Sandy Chadha, Supreme’s chief executive
The revenue for third-party disposable vapes ElfBar and Lost Mary, reported separately in Supreme’s Branded Distribution category, totalled £30.3m for the period, an increase of 15 per cent as a result of having this distribution for the entirety of the period versus only three months last year.
The acquisition of Clearly Drinks has further diversified Supreme’s portfolio, adding £3.5m in annualised EBITDA. The acquisition reflects the company’s strategy to leverage its distribution network for cross-selling opportunities, particularly in its Sports Nutrition & Wellness division.
As a result, non-vape annualised revenue of the company now exceeds £100m or around 45 per cent of group revenue.
“We have experienced steady growth across our categories whilst seamlessly diversifying our portfolio through the acquisition of Clearly Drinks,” Chadha added.
“Adding well-recognised and trusted brands into Supreme’s unrivalled distribution network across UK retail is central to our long-term growth strategy, and this acquisition reaffirms our ability to identify and execute quickly on M&A opportunities.”
Supreme anticipates revenue of around £240m and adjusted EBITDA of at least £40m for FY 2025, driven by continued strength in its core categories and ongoing market adaptation.
