Supreme pays first dividend as H1 profit rises 25%

Manchester-based fast-moving consumer products wholesaler Supreme plc said on Tuesday its revenue increased 9% to £61.1 million in the six months to September 30 as it showed a greater focus on higher margin categories.

Profit before tax rose 25% to £8.5 million.

Supreme said its vaping business grew revenues organically by 13% and its sports nutrition and wellness category grew revenues by 192%.

Shares of Supreme, which went public in February, rose about 5%.

Supreme declared a maiden dividend of 2.2p per share.

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, Sainsbury’s, Sports Direct, Londis, SPAR, Costcutter, Asda, Halfords, McColl’s, Iceland and HM Prison & Probation Service.

Supreme CEO Sandy Chadha said: “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.”