Supreme Share Discussion Threads

[74tom] 02/7/2024 08:05

Trading update on 24/04 said;

"Supreme expects to report FY24 revenue of around £225.0 million (FY23: £155.6 million) and Adjusted EBITDA1 of at least £38.0 million (FY23: £19.4 million), in-line with current market expectations3."

Today they reported revenue of £221.2m...

Where did the £3.8m go?

Not complaining as this was a nice trade, but I got out on the bell.

[brummy_git] 02/7/2024 07:54

In this upbeat interview, CEO Sandy Chadha and CFO Suzanne Smith of Supreme take me through today's sparkling March FY24 results, positive start to the new year and attractive long term vision for the group.

[actscap] 02/7/2024 07:51

Fantastic set of results

[brummy_git] 02/7/2024 07:50

Sparkling March FY’24 results today from FMCG products group Supreme. All the details & commentary here.

[edmonda] 02/7/2024 07:48

"FY24 results generate doubled profit, record cash"

New research report (free & accessible) here:


For the year to 31 March 2024 Supreme reported revenue of £221.2m, +42%YoY, (adj.) EBITDA of £38.1m, +97%YoY and (rptd). PBT of £30.1m, +109%YoY.

Net cash from operations grew 40%YoY to £27.1m, with year-end net cash1 of £11.6m (FY23: £3.2m). (adj.) diluted EPS was 18.19p/share (ED estimate, 20.2p). We see strong performance at gross level, +55%YoY with margin improvement from 26.3% to 28.7%.

The Group has made timely preparation for the transition to traditional refillable, rechargeable e-cigarettes, allowing it to further scale its c.60 m bottle annual production volumes, or to newer pod devices. Supported by strong cash generation Supreme has maintained its strategy of acquisition in a new product area – Soft Drinks, where we expect a full year of contribution in FY26.

Supreme trades on a FY25E (adj.) EV/EBITDA 5.5x and PE of 9.1x, offers a dividend yielding 2.6% and remains highly cash-generative, as evident in the recent cash-based acquisition of Clearly Drinks for £15.0m.

Our Fair Value remains at 225p/share, still well above current levels despite recent strength.

[jatin724] 02/7/2024 07:39

Can't believe so few comments wrt to these knock out results, sure we knew they would be good but.....wow!

[aishah] 02/7/2024 07:28

Firing on all cylinders.

Revenue £221.2 +42%
Adj eps 20.9p +77%
Adj Net cash £11.6 +263%
Dividend 4.7p for the year +57%

Supreme forecasts FY25 to be another profitable and highly cash-generative year for the Group. Having made a positive start in Q1, the Group is trading comfortably in line with current market expectations5.

·      The Company's FY25 trading outlook for the Vaping and Branded Distribution divisions is expected to be largely unaffected by the Government's proposed future disposable vape ban.

·      Alongside an ongoing focus on accelerating organic growth and strategic cross-selling, the Company remains committed to exploring complementary acquisition opportunities to further scale our exceptional distribution channels. The recently announced acquisition of Clearly Drinks Limited "Clearly Drinks"), a soft drinks manufacturer and brand owner, on 21 June 2024 for a net consideration of £15 million is directly in line with this strategy. This acquisition provides product diversification for the Group as well as incremental earnings.

[aishah] 01/7/2024 23:08

Labour will simply raise tax on vapes knowing full well the revenue that will bring in. SUP have diversified too now. Win, win I think.

[adamb1978] 01/7/2024 21:52

They've given a lot of guidance before about the vaping impact so I dobt there will be much new in that regard. Obviously the likely change of government will be positive for them, albeit probably only for a short period.

Agree that outlook statement, as always, will be important. Multiple very undemanding though

[podgyted] 01/7/2024 20:49

Would have thought it was PI's buying before tomorrows final accounts.

Whilst these have been well flagged, the outlook statement will be vital. With the risks around vaping and the vape delivery contract it'll have to be good. Risen 30% in the last 6 trading days.

Took the opportunity to top-slice a bit today to be cautious. Right or wrong I'll be happy.

[purplepelmets] 01/7/2024 18:04

Looking at the chart, someone big is building a stake. My guess is IMB who dropped the vape ball bigly

[gb904150] 01/7/2024 14:32

It's a nice breakout and will be getting all those momentum investors interested....and I suspect a few II's too.

[aishah] 01/7/2024 12:45

Nice rise post the Clearly Drinks acquisition. Wonder if IIs are accumulating here?

[tulley1] 25/6/2024 16:07

This is going to build up to results next week

[danmart2] 25/6/2024 07:52

Nice acquisition

[kevph] 24/6/2024 08:00

Interesting to see it brings group sales to 250mil. Forecast sales are 225mil on stocko. Add in the 22mil from the acquisition and this tells us they are expecting an earnings beat of about 3mil. Excellent news. GLA

[owenski] 24/6/2024 07:45

Effectively earning 13% return on their cash purchase vs 3 or 4% left in the bank.

Re-investing cash into new businesses is a good move.

[edmonda] 24/6/2024 07:38

"Acquisition of Clearly Drinks"

Supreme has announced the acquisition of Clearly Drinks Ltd., for a total net cash (debt free) consideration of £15m, funded from cash. Clearly Drinks is a manufacturer of specialised canned and bottled-at-source spring water and soft drinks with FY23 annual turnover of £22m and EBITDA of £3.0m. This is a significant diversification, which increases the FY25E contribution from non-vaping revenue streams from £85m (38% of total) to £100m (42%).

The acquisition of Clearly creates a new Supreme Business Category. We estimate that the immediately earnings enhancing acquisition should add £14.7m to our FY25 revenue outlook based on estimated 5%YoY Clearly Drinks growth (pro rata), and (adj.) EBITDA by £2.0m (13.6% margin). FY25E (adj. dil.) EPS increases from 18.5p to 19.8p (+6.7%). Supreme reports full year FY24 results on 2 July offering the opportunity to review estimates and add the medium-term impact on earnings.

New research note here:

[brummy_git] 24/6/2024 07:23

Positive news wrt Supreme's highly synergistic £15m acquisition of Clearly Drinks today.

All the details, commentary & analysis here from an interview with CEO Sandy Chadha


and an associated update article.

[dr biotech] 24/6/2024 07:21

Yep. They need to expand outside vaping.


News isn’t showing on my advfn feed.

[adamb1978] 24/6/2024 07:19

Seems like a sensible deal

[muffster] 12/6/2024 22:50

Crazy foolVaping burns holes in your lungs, likelyto cause heavy breathing and potentially heart attack.Also you look stupid.Ban expected. Same for high energy drinks

[danb45] 12/6/2024 19:39

saw a guy buying a 50 gram pouch of golden Virginia earlier - 23 English pounds !! think it was half the price when I used to smoke that rubbish.So glad I switched to vaping about 15 years ago now - ok I'm still addicted to nicotine but I like a coffee too, certainly much fitter and healthy now I don't smoke, and more money in my pocket too !!

[gb904150] 12/6/2024 13:34

It's not so much about what is in Labour's manifesto it's what they actually do when in power that matters! But yes, I get your point....who cares about The Conservative manifesto.....or indeed anything The Conservative party says now.

I expect that when Labour are in charge they will come to quite like the tax revenues from vapes and tobacco. As it pays for all the lovely 'plans' they have but aren't telling you about.

They might tax it a bit more but who cares? You could double the tax on vapes and people would still pay for it.

Vaping is still about 1/10th the cost of smoking.

From SUP's point of view, more tax on vapes doesn't impact them much. They are one of the cheapest on the market. Their strategy is a numbers game - acquire as many brand loyal customers as possible.

The more customers they get the more valuable they are.