Supreme (SUP) H2 2024 earnings summary

Executive summary

• Achieved record financial performance in FY24, with revenue up 42% to £221.2m and Adjusted EBITDA up 96% to £38.1m year-over-year.

• Growth was driven by organic initiatives across all divisions and the addition of the ElfBar/Lost Mary distribution agreement.

• Ended the year bank debt-free, with Adjusted net cash of £11.6m, and completed a £1.0m share buyback.

• Final dividend proposed at 3.2p per share, bringing total dividends for the year to 4.7p, a 57% increase over FY23.

Financial highlights

• Revenue: £221.2m (+42% vs. FY23); Adjusted EBITDA: £38.1m (+96%); Gross profit: £63.5m (+55%).

• Net cash from operations: £27.1m (+40%); Adjusted net cash: £11.6m (+263%).

• Adjusted EPS: 20.9p (+77%); Profit after tax: £22.4m (+87%).

• All divisions reported revenue and gross margin growth.

Outlook and guidance

• FY25 expected to be profitable and highly cash-generative, with trading in line with market expectations.

• Vaping and Branded Distribution divisions expected to be resilient to the proposed disposable vape ban.

• Ongoing focus on organic growth, cross-selling, and complementary acquisitions, including the acquisition of Clearly Drinks Limited for £15m in June 2024.