Supreme (SUP) H1 2025 earnings summary

Executive summary

• Revenue increased 8% year-over-year to £113 million, driven by core business growth and the Clearly Drinks acquisition.

• Adjusted EBITDA rose 22% to £18.5 million, with higher gross margins and tight overhead control.

• Dividend per share increased 20% (to 1.88p or 1.8p), reflecting confidence in the business and strong cash flow.

• No bank debt at period end, with over £50 million in unused borrowing facilities.

• Major acquisition of Clearly Drinks for £15.6 million, expanding into soft drinks and boosting diversification.

Financial highlights

• Gross margin improved from 27% to 30%, driven by Clearly Drinks and higher vaping margins.

• Adjusted EBITDA margin increased from 14% to 16.4%.

• Segmental growth: batteries up 9%, lighting up 8%, wellness up 7%, branded distribution up 12%.

• Operating cash flow reached £11.3 million, with net assets of £65.3 million.

• Adjusted pre-tax profit rose 25% to £14.7 million; EPS up 16% to 9.2p.

Outlook and guidance

• FY25 adjusted EBITDA guidance upgraded to at least £40 million, with revenue guidance raised to around £240 million.

• Well positioned for upcoming UK vape tax and disposable vape ban, expecting market consolidation to benefit agile players.

• Cautious optimism for next year, with ongoing focus on cash generation, M&A, and profit growth.