Page 1

RNS Number : 7485U Supreme PLC 07 December 2021 7 December 2021 Supreme plc ( " Supreme , " the " Company " or the " Group " ) Unaudited Results for the Half Year Ended 30 September 2021 Strong profit performance driven by organic growth , M & A and product launches Supreme ( AIM : SUP ) , a leading manufacturer , distributor and brand owner of fast - moving consumer products , announces its unaudited results for the six - month period ended 30 September 2021 ( " HY 2022 " or the " Period " ) . Financial highlights HY 2022 £ m HY 2021 % £ m change UNAUDITED UNAUDITED Revenue Gross profit Gross profit % 61.1 56.3 9 % 18.1 14.3 27 % 30 % 25 % Adjusted EBITDA¹ 10.1 8.4 20 % Adjusted EBITDA¹ 17 % 15 % margin % Profit before tax 8.5 6.8 25 % Net debt -61 % 8.4 21.7 EPS 5.8p 5.0p 16 % 5.9p 2.2p 5.2p 13 % Adjusted EPS² Ordinary dividend Revenues increased by 9 % to £ 61.1 million ( HY 2021 : £ 56.3 million ) , with a greater focus on higher margin categories Vaping category grew revenues organically by 13 % Sports Nutrition and Wellness grew revenues by 192 % Gross profit margin increased from 25 % to 30 % due to enhanced product mix and increased in - house manufacturing 20 % increase in Adjusted EBITDA¹ to £ 10.1 million ( HY 2021 : £ 8.4 million ) with a margin of 17 % Overheads remain tightly controlled with minimal investment required to support future growth Net debt of £ 8.4 million ( HY 2021 : £ 21.7 million , FY 2021 : £ 7.6 million ) The Board has declared a maiden dividend of 2.2p per share , payable on 14th January 2022 to all shareholders on the register on 17th December 2021 Operational highlights Two acquisitions completed and successfully integrated into Supreme's platform , financed from existing cash resources : Vendek - a leading batteries and lighting distributor based in Republic of Ireland Sci - MX - a well - known sports nutrition brand Launched Sealions , the Group's first digital - only vitamins brand , in July 2021 , and vitamins retail brand , Millions & Millions , in September 2021 , with Davina McCall as brand ambassador Successfully began servicing new customer mandates won in the Period including Sainsbury's and McColl's Continued to scale in - house manufacturing capabilities to meet future demand and drive longer term margin improvement Continue to proactively manage supply chain where relevant with minimal impact on trading , but remain vigilant Outlook Good start to the second half of the year ( " H2 2022 " ) achieved with Adjusted EBITDA 1 expected to be at least in line with market expectations The Company has consciously invested in additional stock of key lines and raw materials to provide further shelter from any potential supply chain disruption in H2 2022 The Board remains confident in the future growth prospects for Supreme in the medium- to long - term Sandy Chadha , Chief Executive Officer of Supreme , commented : " The combination of Supreme's extensive retail relationships combined with our high volume , great value product proposition continued to underpin our strong profit performance in the first six months of trading in the current financial year . Our market- leading Vaping category , alongside our high growth Sports Nutrition & Wellness division , continue to outperform their respective markets - further demonstrating our ability to attract and maintain consumer demand . " When combined with the operational developments we have implemented , including the acquisitions of Vendek and Sci - MX alongside the launches of Millions & Millions and Sealions , this has been an important period for our business , as we continue to leverage our unique capabilities and integrated approach to accelerate performance . " The second half of the current financial year has started well and our established business model , alongside our diverse product portfolio , provides the Board with confidence in the Group delivering a good performance in the second half and beyond . " 1 Adjusted EBITDA means operating profit before depreciation , amortisation and Adjusted items ( as defined in Note 4 of the financial statements ) . Adjusted items include share - based payments charge , fair value movements on non - hedge accounted derivatives and other non - recurring items ( including all IPO - related costs ) Page 1 of 13