Superior Group of Companies (SGC) investor relations material

Business overview and growth strategy

• Operates in healthcare apparel, branded products, and contact centers, all with significant growth potential and fragmented markets offering organic and acquisitive expansion opportunities.

• Contact center segment is the fastest growing and highest margin, with a sales CAGR of nearly 17% since 2018 and a projected 10% EBITDA margin in 2025.

• Revenues have grown at a 10% annualized rate since 2015, driven by both organic growth and acquisitions.

• Guidance for the current year targets up to $585 million in sales, representing about 3% growth over the prior year.

• Strategic focus includes consistent dividends, share repurchases, organic investments, and targeted acquisitions, especially in branded products and contact centers.

Segment highlights and competitive advantages

• Healthcare apparel business covers all distribution channels and serves a $4 billion TAM, with strong institutional and consumer brands.

• Branded products segment is among the top 10 in a $27 billion U.S. market, producing tens of millions of items annually and serving major enterprise clients.

• Contact centers operate in multiple countries, focusing on high-touch, small-to-medium clients, leveraging analytics and AI for customer experience.

• Deep supply chain integration, global manufacturing redundancy, and advanced technology platforms provide resilience and customer stickiness.

• Overseas back-office operations and direct-to-factory relationships enable cost efficiency and rapid response to market changes.

Market trends, customer behavior, and resilience

• Healthcare uniforms remain a necessity, with some downshifting to value products due to economic pressures, but unit demand is stable.

• Branded merchandise demand has rebounded, with employers investing in retention and curated gifts gaining traction over generic items.

• The company has demonstrated agility in navigating crises, leveraging manufacturing redundancy and pivoting quickly during disruptions like the pandemic.

• Both existing enterprise clients and new customer pipelines offer significant runway for growth, especially in branded products and contact centers.

• M&A strategy targets larger, strategic acquisitions to add new channels or capabilities, supported by strong liquidity and financial flexibility.