For the year to 31 March 2022, Supreme PLC reported revenue of £130.8m, +7.0%YoY, gross profit of £38.5m, +16.6%YoY, and EBITDA (adj.) of £21.1m, +9.3%YoY. The contribution to total revenue from Vaping dominated at 33.3%, with Sports Nutrition and Wellness rising from 5.6% to 12.2%. Year-end net debt was £4.0m, with a proposed full year dividend of 6.0p/share.
FY22 performance was within 1.0% variance of our estimates. During the year the Group noted: the addition of new vaping contracts with Sainsbury’s, Morrisons and Core Communications; acquisition of Vendek Ltd., in Ireland, allowing access to the EU; acquisition of the Sci-MX sports nutrition products and brand; over 3,300 retail and public sector clients and 70,000 active customer accounts.
Headwinds in Lighting reduce our FY23E EBITDA outlook from £22.8m to £17.5m.
Group customers in the Lighting products division report inventory and stock build which should reduce the pipeline of demand in the current year. High margin (33.1%) Lighting products contributed 24.3% of FY22 gross profits, making the impact of inventory correction noteworthy.
Accordingly we reduce our Group FY23 revenue outlook from £143.5m to £129.5m, and EBITDA from £22.8m to £17.5m.
Our Fair Value / share is reduced from 245p to 190p.
