Supreme plc, the Manchester fast-moving consumer products supplier, on Tuesday touted optimism for its outlook as vaping products boosted its revenue but profit fell in the first half of its financial year.
For the six months to September 30, Supreme said pretax profit fell 48% to £4.4 million but revenue climbed 6% to £64.6 million.
Interim dividend fell 64% to 0.8p from 2.2p.
Shares in Supreme fell about 3%.
Supreme supplies products in batteries, lighting, vaping, sports nutrition and wellness. It’s customers include B&M, Home Bargains, Poundland, The Range, Sports Direct, Londis, SPAR, Costcutter, Asda, Halfords, Iceland and HM Prison & Probation Service.
The firm’s administrative expenses increased 43% to £13.4 million. Cost of sales widened 8.2% to £46.5 million.
Looking forward, the company said it had a positive start to the second half of its financial year 2023 “with trading now ahead of market expectations for FY 2023.”
Supreme added: “The business continues to navigate global trading challenges arising from raw material cost price increases, and inflationary increases to its overhead base …
“The board remains confident in the future growth prospects for Supreme in the medium to long term, with the group focusing on generating organic growth whilst fully integrating its recent Vaping acquisitions.”
Supreme CEO Sandy Chadha said: “Pleasingly, the business has delivered a solid trading performance in the period, buoyed by excellent sales growth from within our Vaping category.
“The additional expansion of our Vaping and Sports Nutrition & Wellness product portfolios, combined with our enhanced retail and online footprint and the rationalisation of our manufacturing operations, continues to support our value consumer proposition.
“With our Lighting division stabilising after a temporary setback, and pricing pressures beginning to ease, the board’s confidence in the group’s future growth prospects remains high, and we look forward to a productive second half of the financial year.”
Reporter: Tom Budszus
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