Supreme plc, the Manchester-based supplier of vaping and fast-moving consumer goods, doubled its annual profit, but its shares dipped 5% on Tuesday in the shadow of a looming ban on disposable vaping products.

The company said its annual revenue rose 42% to £221.2 million for the year ended March 31, while adjusted EBITDA almost doubled to £38.1 million.

However, investors’ attention appeared more focused on the potential ban.

“Supreme remains mindful of the UK Government’s highly publicised proposal to ban disposable vaping devices in a bid to combat underage vaping, as well as its provisional plan to introduce an excise duty on vaping products, albeit from October 2026,” the company said in its final results statement.

The company’s revenue from disposable vapes was £70.7 million for the year, representing 32% of overall revenue.

“Having made a positive start in Q1, the Group is trading comfortably in line with current market expectations,” it said. “The Company’s FY25 trading outlook for the Vaping and Branded Distribution divisions is expected to be largely unaffected by the Government’s proposed future disposable vape ban,” it added. 

Despite that confidence, investors knocked 5% of the company’s shares, trading at 170p on the London Stock Exchange. 

“Looking at our vaping business, we are fully committed to doing what we can to support the eradication of underage vaping so that the industry can get back to its core objective: helping adult smokers find an affordable, sustainable, and safer alternative to smoking,” said Sandy Chadha, Chief Executive Officer.

“I am not concerned that the Government’s vaping proposals will have any long-term impact on Supreme as a responsible manufacturer and distributor with resources and experience to adapt to potential new market dynamics. 

The company said it remained committed to exploring complementary acquisition opportunities to further scale its distribution channels, which might help offset any dip in vaping sales. 

“Operationally and financially, we are in an excellent position to expand organically and, as we’ve successfully demonstrated in the past – and post-period end with the Clearly Drinks acquisition – we continue to evaluate complementary acquisitions,” said Chadha. 

Supreme supplies batteries, lighting, vaping, and soft drinks to more than 3,000 business customers, including B&M, Asda, Waitrose, Tesco, Sainsburys and Amazon.