In the Quant Value Newsletter, Supreme Plc is analyzed, with a look at its valuation metrics, diverse consumer products, recent results, acquisitions, growth prospects in Europe, and more.
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Supreme Plc – Europe
Description
Supreme Plc (Supreme) is a consumer products company based in Manchester, United Kingdom.
The company manufactures, distributes, and owns brands across several categories of fast-moving consumer goods. Its end-to-end capabilities include product development, manufacturing, retail distribution, and direct-to-consumer channels.
Products & Services
The company has six core product categories:
- Vaping: Including in-house developed brand 88Vape
- Sports Nutrition and Wellness: Marketed primarily through Sci-MX and Battle Bites
- Branded Household Consumer Goods: Distributed under licenses from global brands
- Batteries: Featuring brands like Duracell, Energizer, and Panasonic
- Lighting: Under licensed brands such as Energizer, Eveready, Black & Decker, and JCB
- Soft Drinks: Through the acquisition of Clearly Drinks, with brands such as Perfectly Clear and Northumbria Spring
- Additionally, Supreme Plc has expanded into the tea market with the British brand Typhoo.
Sales for the full year ended 31 March 2024 was distributed as follows:
- Vaping: 37.4%
- Branded distribution: 28.7%
- Batteries: 18.3%
- Sports nutrition & wellness: 8.1%
- Lighting: 7.5%
Sales by Geography
- United Kingdom: 91.6% of FY2023/24 sales
- Ireland: 3.3% of FY2023/24 sales
- Netherlands: 1.5% of FY2023/24 sales
- France: 0.4% of FY2023/24 sales
- Rest of Europe: 0.5% of FY2023/24 sales
- Rest of the World: 0.7% of FY2023/24 sales
Management and Shareholding
Sandeep Singh Chadha, the Chief Executive Officer and a Board Director, is a key figure in the company’s leadership. He has been with the company since its inception and holds 56.0% of the company’s shares valued at approximately £112 million.
Recent results
In the full year trading update published in April 2025 for the financial year ended 31 March 2025, the company reported a 6.2% increase in sales to approximately £235.0 million, compared to £221.2 million in the previous financial year (FY24).
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 5.0 percent to at least £40.0 million, up from £38.1 million in FY24.
The improvement in financial performance was attributed to:
- Positive contributions from acquisitions.
- Continued management and control of the company’s cost base.
Supreme invested £25.0 million in acquisitions but still maintained a net-cash positive position at the end of the period.
Operational Highlights
Supreme completed the acquisitions of Clearly Drinks and Typhoo Tea, expanding into the soft drinks and hot beverages categories.
The company is actively exploring new commercial opportunities and increasing focus on new product development to leverage the potential of its expanded portfolio.
Within the vaping segment, sales performance remained stable and in line with internal estimates, despite the looming UK ban on disposable vapes effective from 1 June 2025.
Supreme has proactively invested in rechargeable pod system vaping devices, aiming to maintain its strong position in the UK vaping market, supported by its established retail partnerships.
Outlook
There are no specific forecasts provided for the full year 2026 revenue or profitability however, the company expects to continue trading in line with market expectations for the full year ending 31 March 2026.
Analysts’ consensus for the year ending 31 March 2026, immediately before this announcement, was revenue of around £231 million and Adjusted EBITDA of around £36.6 million.
Management remains confident in the group’s future, underpinned by its diverse product base, ongoing new product development, and successful integration of acquisitions.
The upcoming ban on disposable vapes presents a regulatory challenge; however, the company has already taken steps to mitigate potential disruption through product innovation.
Potential performance factors include:
- The impact of the disposable vape ban on short-term sales.
- Success in commercialising new acquisitions.
- Broader consumer spending patterns and input cost management.
Further Reading
Portfolio
