Superior Group of Companies (SGC) investor relations material

Investment highlights and business overview

• Operates three diversified businesses: healthcare apparel, branded products, and contact centers, each in large, fragmented, and growing industries.

• Contact center segment is the fastest growing and highest margin, with a five-year sales CAGR of 22% and 12.6% EBITDA margin in 2024.

• Consistent dividend payments since 1977 and active share repurchase program, with $17.5 million authorized and $7 million spent this year.

• Achieved 11% annualized revenue growth over the past decade, reaching $566 million in 2024.

• Capital allocation prioritizes dividends, opportunistic buybacks, organic investment, and strategic acquisitions.

Segment performance and market dynamics

• Healthcare apparel serves both consumers and institutions, with strong brands and a $4 billion TAM; steady demand from nurses and cautious institutional buyers.

• Branded products segment is among the top 10 U.S. distributors in a $26 billion industry, with high customer retention and significant market share opportunity.

• Contact center business operates nearshore and is expanding, with robust pipelines and plans for offshore growth via acquisition.

• All segments have demonstrated growth and profitability, supported by a diversified customer base.

Macro environment and customer sentiment

• Political and economic uncertainty, tariffs, and interest rate expectations have impacted purchasing, especially in branded products.

• Pent-up demand benefited Q2, with 14% revenue growth; holiday season and potential rate cuts could further boost activity.

• Institutional healthcare buyers remain cautious due to industry consolidation, but market outlook is healthy.

• Contact center demand is strong, with more business in late-stage pipeline than ever before.