Supreme (SUP) H2 2025 earnings summary

Executive summary

• Revenue increased 4% year-over-year to £231.1m, driven by acquisitions and core business growth.

• Adjusted EBITDA rose 6% to a record £40.5 million, exceeding analyst expectations.

• Gross profit margin improved from 29% to 32%, reflecting manufacturing efficiencies and scale.

• Two strategic, earnings-enhancing acquisitions: Clearly Drinks and Typhoo Tea, both integrated rapidly and profitably.

• Business reorganized into three core categories: Vaping, Drinks & Wellness, and Electricals.

Financial highlights

• Revenue up 4% year-over-year to £231.1m, with acquisitions contributing significantly.

• Adjusted EBITDA reached £40.5 million, up from £38.1 million last year.

• Gross profit margin increased to 32%, the highest to date.

• Ended the year with a positive net cash position after £25.6 million spent on acquisitions.

• Dividend per share increased 10% to 5.2p.

Outlook and guidance

• Trading in line with current market expectations for FY2026 and FY2027.

• Cautious approach to guidance due to market transitions, especially in vaping.

• M&A pipeline remains active, with capacity for further acquisitions.

• Anticipates 10% annual growth in Drinks & Wellness, primarily through volume.

• In-house manufacturing capacity supports future growth across multiple categories.