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 £40.5m, exceeding analyst expectations.

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

• Drinks & Wellness sales doubled to £49m, supported by acquisitions of Typhoo Tea and Clearly Drinks.

• Positive net cash position maintained at year-end after £25.6m invested in acquisitions.

Financial highlights

• Revenue up 4% year-over-year to £231.1m, with core vaping business growing 6–8% and drinks/wellness doubling mainly via acquisitions.

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

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

• Dividend per share increased 10% to 5.2p.

• Ended the year with positive net cash after significant M&A and CapEx.

Outlook and guidance

• Trading in line with current market expectations for FY26 and FY27, with cautious guidance due to market transitions.

• Transition from disposable vapes to pods expected to impact revenue mix, with a Q1 sales spike from initial pipe fill.

• FY27 revenue expected to normalize after transition, with cautious assumptions and no major organic growth factored in.

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

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