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SUP Supreme Plc

173.50
1.50 (0.87%)
13 Sep 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Supreme Plc LSE:SUP London Ordinary Share GB00BDT89C08 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  1.50 0.87% 173.50 68,032 16:11:15
Bid Price Offer Price High Price Low Price Open Price
170.00 177.00 174.50 171.00 171.00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Household Appliance Stores 155.61M 11.97M 0.1026 16.91 200.57M
Last Trade Time Trade Type Trade Size Trade Price Currency
16:11:04 O 500 175.00 GBX

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Supreme (SUP) Discussions and Chat

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Date Time Title Posts
12/9/202407:52Supreme imports floats on AIM1,357
21/1/200121:49SUPERFRAME2
11/1/200123:00SPERFRAME a Super Shell ?-
11/1/200123:00SUPERFRAME a Super Shell ?-

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Posted at 14/9/2024 09:20 by Supreme Daily Update
Supreme Plc is listed in the Household Appliance Stores sector of the London Stock Exchange with ticker SUP. The last closing price for Supreme was 172p.
Supreme currently has 116,611,033 shares in issue. The market capitalisation of Supreme is £202,320,142.
Supreme has a price to earnings ratio (PE ratio) of 16.91.
This morning SUP shares opened at 171p
Posted at 02/9/2024 14:47 by adamb1978
Going back to the discussion from 6-12+ months ago. Banning vaping would be perverse given its the best route off niccotine. Regulation, taxes etc is likely, but in a way helps SUP given it will help block other entrants.

Banning single use, disposables is a foregone conclusion and SUP have disclosed the impact. Might be helpful for them to do so again so that its' easy for people to run the numbers.

I think the case is interesting even with that part going to zero, particularly given the quality of the management team
Posted at 02/9/2024 11:44 by actscap
The market forgets that a modest 20p price increase is being passed on to supreme customers in october. Should help offset some of the negative sentiment here.One last thing. I would love to see the 88 vape pouches being launched soon. Think this is a real growth area that could absorb some of the harsher legislation that may be coming.
Posted at 02/9/2024 11:40 by actscap
25% fall from highs. More draconian smoking measures will prompt more vape and nicotine pouch usage. Besides the moat for supreme is NOT in vaping. Vaping is simply one of their many avenues in their wider and growing umbrella As a reminder, from the annual report ...Our products share a common DNA; they are all branded 'value' consumer staples, offered at disruptively low prices, are easily transported and displayed with simple consumer offerings that our customers do not return. It is my belief that Supreme can be a value FMCG powerhouse; a mini version of Reckitt Benckiser or Unilever.
Posted at 02/7/2024 07:48 by edmonda
"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.
Posted at 17/5/2024 08:24 by gb904150
Yes, valued like a tobacco stock due to regulatory risk but a much better business.

Tobacco is in decline. Taxes will see to that in the west but in emerging markets they have a more robust and longer term business.

In the west it's a dying industry that needs to diversify into NGP's and meanwhile they have to manage all the lawsuits.

Compare that to SUP which has no legacy/liability business like that. It has a vertically integrated platform that manages multiple sectors well - batteries, lighting, health (vits and supps) and vaping.

SUP have something that is very attractive to big tobacco - multiple vape brands and tens of thousands of loyal customers. Big tobacco has lots of money and needs to diversify into NGP's.

The vape sector is growing so quickly and we've just navigated the most recent regulatory risk.

The next risk is of course a Labour government who will arrive EOY 2024 and will maybe want a battle with vapers. But Labour will want/need the tax revenues and they won't want to annoy millions of voters, so they won't be able to do that much.

At a FPE of around 7 and with 3.5% divi yield I think SUP is a good long term bet.
Posted at 29/4/2024 12:36 by carcosa
Aishah,

Several academic studies have found a positive correlation specifically between founder ownership and equity returns or operating performance metrics for smaller public companies across various markets. The effect tends to be more pronounced for small versus large caps.

Founders with large shareholders are statistically better as investments because companies where founders retain a significant ownership stake tend to have better share price performance on average. This is because founders' interests are more aligned with outside shareholders when they have "skin in the game."

Founders with large equity stakes tend to take a longer-term view in decision making versus professional managers. This can benefit share prices over multi-year periods.

For relatively small market capitalisation companies, the correlation between high founder ownership and better share price performance seems to be stronger based on available research.

For example:
Posted at 29/4/2024 11:25 by carcosa
In summary:
Supreme CEO Sandy Chadha discusses the company’s strong financial performance, future prospects, and industry trends in a Q&A session.

Highlights:
- Supreme’s adjusted EBITDA nearly doubled to £38 million, with sales up 44% to £225 million.

- Despite regulatory uncertainty, demand in the vaping industry remains robust, with a shift towards pod systems anticipated after the ban on disposable vapes in April.

- Higher margins are expected with reusable vape cartridges, with plans to manufacture them in the UK.

- Supreme is in a net cash position, considering options like dividends, share buybacks, or strategic acquisitions to utilise cash (preferred option).

- The company’s other divisions, including batteries, lighting, and sports nutrition, are performing well, positioning Supreme for continued growth.

Anyone else thought the VOX video opening/closing sequence, including music, was a version from Proactive Investors?
Posted at 24/4/2024 07:27 by edmonda
"Trading update highlights scale of growth"

In a Trading Update for the twelve months to 31 March 2024 Supreme expects to report revenue of c.£225m, and (adj.) EBITDA of at least £38.0m, in line with market expectations, which had been revised upwards during the course of the year and represents almost double the FY23 level. The Group closed the year debt free.

Our outlook highlights the extent to which Supreme has expanded, through both acquisition and organic growth during the period. From 2020 to 2024E the Group will have grown sales by 144%; Vaping +3.9x and all other Business Categories outside Vaping (Batteries, Lighting, Sports Nutrition & Wellness and Branded Distribution) +31%. Notwithstanding the impressive growth track record to date, the Group remains committed to complementary acquisition opportunities.

On the same basis, FY20-FY24E revenue will have grown at a 25% CAGR (FY20-FY25E, 20% CAGR) and (adj.) EBITDA at a 24% CAGR (FY20-FY25E, 15.1% CAGR).

The update shows the scale of Supreme’s growth in recent years with FY24 backed by organic revenue and profit growth across all divisions. Comparison of our FY25E outlook with a group of (18) companies representative of each of Supreme’s core Business Categories highlights the Group’s relative discount on a FY25E EV/(adj.) EBITDA 4.2x multiple compared to an overall average of 11.0x. Our Fair Value remains 225p/share, indicative of 7.5x FY25 EV/EBITDA.

Link to report:
Posted at 04/3/2024 12:15 by gb904150
JohnDoe23 - you are calling this right.

I've added a few more.

It seems there is a familiar pattern.

SUP announces great results, trading volumes, profits, buybacks etc. share price adds 30%.
Government threatens legislation, taxes, complication. share price loses 30%.

The point is regulation, taxes and govt complication favours big players like SUP who can respond, comply and consolidate by buying up the weaker players. SUP have already done that.

Tax on vapes isn't going to lead to any less vaping until taxes hit a critical point where vapes are no longer be affordable. What was that price point for a pack of cigarettes? £8? £10

But vaping is starting out such a low cost it will have zero effect.

Sell price on 10ml 88vape liquid - £1.


What do we think cost price is on that? 30p? So 88vape make 70p.

If the govt makes it so there is 50% tax. The new RRP is £2.

The govt now makes £1.
88vape (SUP) will still be making their 70p.

It is the consumer who will pay the tax. Not vape manufacturers.

I doubt the tax will be as hefty as that to start with.



Here they suggest an extra £1.40 tax on a £4 bottle of 10ml liquid. For an extra £72 or so cost for the year.

Compared to cigarettes vapes are so cheap so i think the impact is minimal and it's all for show.

I think around 85% of cigarette price is tax. Back in 2015 it was 83% according to this:




hxxps://news.sky.com/story/spring-budget-2024-what-to-expect-from-tax-cuts-to-vaping-duty-13081493


Vape duty

The same report said Mr Hunt is considering a "vaping products levy" which would be paid on imports and by manufacturers of vapes in an attempt to make the habit unaffordable for children.

The tax will be specifically on the liquid in vapes, with higher duties for products with more nicotine. However, to ensure vaping remains a cheaper alternative to smoking, there will also be a one-off increase in tobacco duty, with the two measures expected to raise £500m by 2028/2029, the report said.

Downing Street confirmed to Sky News that the levy is being considered "as an option".
Posted at 14/2/2024 14:50 by adamb1978
Always very hard / impossible to link buyback to share price performance, partly because volumes arent that material and partly because there are 1000 other factors driving a share price

However if you look at TIG, their buyback is 10% of market cap and the share price has moved up in a market which has been soft
Supreme share price data is direct from the London Stock Exchange

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