Supreme (SUP) H2 2026 earnings summary

Executive summary

• Achieved record revenue growth of 17% year-over-year, reaching £270.2m, with a CAGR of 20% in revenue and 17% in EBITDA since 2021.

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

• Major acquisitions included SlimFast (£20.6m) and 1001 (£1.7m), both immediately earnings-enhancing.

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

• Expanded international footprint, especially in Hong Kong and the Middle East, and signed new licenses with Carabao and Lamborghini.

Financial highlights

• Revenue up 17% year-over-year, with £27.1m from acquisitions and £19.1m from organic vaping growth.

• Gross profit margin declined from 32% to 29% due to product mix shift.

• Adjusted EBITDA reached £40.6m, with operating cash flow of £32–32.4m and year-end net cash of £7.5m.

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

• Adjusted profit after tax was £22.2m; adjusted EPS at 18.9p.

Outlook and guidance

• Positive start to the new year, focusing 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.

• SlimFast identified as a significant growth opportunity with ongoing investment.

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

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