Shares of Supreme plc, the Manchester fast-moving consumer products supplier, rose about 6% after it announced it was selected as a master distributor for vaping brands ElfBar and Lost Mary, and said it now anticipates that trading in FY24 will be significantly ahead of current consensus.
Company compiled analyst consensus for the year ending March 31, 2024, has been revenue of £159 million and Adjusted EBITDA of £22.6 million.
Supreme also announced results for the year ended March 31, 2023, showing revenue up 19% to £155.6 million and profit before tax down 11% at £14.4 million.
Total dividend for the year will be 3p per share.
Supreme’s vaping division delivered a record performance, nearly doubling revenues to £76.1 million and increasing gross profit to £28.1 million from £19.5 million.
In its outlook, Supreme said it has made a very solid start to FY24.
The group now expects to generate a further £25 million to £30 million of revenue and around £2 million incremental adjusted EBITDA in FY24 as a result of the new vaping distribution deal.
The company will supply ElfBar and Lost Mary products to some of the UK’s biggest retailers including Tesco, Morrisons, One Stop and WHSmith Travel.
Supreme CEO Sandy Chadha said: “Supreme has delivered a strong performance across the year punctuated by an outstanding contribution from our Vaping division, which has almost doubled revenues in the year.
“Our commitment to providing highly affordable but competitively priced products sits at the heart of our business and our diverse client base continues to provide a stable platform for growth.
“As we look to the future, we remain committed to expanding our product set, both organically and via acquisition, which in turn creates greater opportunities to cross sell and forge ever closer bonds with our customers.
“I am delighted with the strong performance of the group so far in FY24 and to have had our vaping distribution capabilities recognised by one of the world’s biggest vaping brands is testament to our expertise and our reputation.”