Shares of Manchester-based fast-moving consumer products wholesaler Supreme plc, which went public in February, rose as much as 8% on Monday after it published a positive trading update for the six months ended September 30, 2021.
Supreme supplies products across five categories; batteries, lighting, vaping, sports nutrition & wellness, and branded household consumer goods.
Supreme’s customers include B&M, Home Bargains, Poundland, The Range, Sports Direct, Londis, SPAR, Costcutter, Asda, Halfords, Iceland and HM Prison & Probation Service.
“The board is pleased with the strong performance of the group in the first half of the financial year and remains confident in achieving expectations for the full year,” said Supreme.
“Positive momentum in the vaping division has continued alongside particularly strong growth in the sports nutrition and wellness category.
“Lighting has benefitted from some brought forward sales in addition to the expected organic growth and batteries continues to be a defensive and predictable profit contributor for the group.
“As manufacturing in Supreme’s key vaping and sports nutrition categories is in-house, the group has been relatively unaffected by global supply chain issues affecting other areas of the economy.
“In addition, active management in the group’s batteries and lighting divisions has also largely insulated Supreme from these issues.
“Management remain cognisant of supply chain and labour constraints but are confident of being able to manage these risks in-line with the growth the group is delivering.
“Integration of Sci-Mx and Vendek was completed in the period and both are progressing well and management remain confident in the prospects for these businesses.
“Overall, group margins have been particularly strong with significant year-on-year growth in profitability.
“Whilst it is too early to draw conclusions about the full year, the board is pleased with the performance of the group and looks ahead with confidence.”