Supreme (SUP) investor relations material

Executive summary

• Achieved record revenue growth of 17% year-over-year, with a CAGR of 20% in revenue and 17% in EBITDA since 2021.

• Growth driven by both organic expansion (notably vaping) and acquisitions, all funded from free cash flow with no debt.

• Major acquisitions included SlimFast and 1001, both immediately earnings-enhancing.

• Diversified product portfolio across vaping, wellness, drinks, electricals, and household, with 30 brands managed.

• International expansion underway, especially in Hong Kong and the Middle East.

Financial highlights

• Revenue up 17% year-over-year; EBITDA flat due to increased overheads and lower gross margin.

• Gross profit margin declined from 32% to 29% due to transition from disposable vapes to pods.

• Operating cash flow of £32 million from £40 million EBITDA; closed year with £7.5 million net cash.

• Spent £13 million on acquisitions and £6 million on CapEx, yet remained cash generative.

• Profit before tax lower year-over-year due to higher depreciation/amortization and non-cash items.

Outlook and guidance

• Positive start to the new year, with focus on integrating acquisitions and preparing for Vaping Products Duty (VPD) in October.

• Expect revenue to increase post-tax implementation, but margins to decrease; cash generation expected to remain strong.

• Baseline CapEx expected to normalize at £2 million per year after recent one-off investments.

• Open to further M&A, with £40 million in undrawn banking facilities available.