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On 30th June 2021, Supreme acquired the brands and stock of Sci-MX Nutrition Limited, a leading sports nutrition and supplements business, for £2.3 million. The Acquisition added a number of well-known brands (including Sci-MX and PRO2GO) to the Group's growing Sports Nutrition & Wellness category.
*** Investor webinar with CEO & CFO - recording now available ***
Sandy Chadha, CEO, and Suzanne Smith, CFO, take investors through the journey Supreme plc has been on, and the opportunities that lie ahead. Between the steady market they have established in Batteries and Lighting, through to the big growth opportunities in Vaping, and Sports Nutrition & Wellness, we hear how a core team, with the proven ability to market their own brands and successfully integrate acquisitions, is leveraging their growing manufacturing expertise to deliver value for shareholders.
Link here to video: https://www.equitydevelopment.co.uk/research/supreme-full-year-results-presentation
Great coverage of Supreme’s exciting story - should be positive
The addition of Sainsbury's to the 88vape list of retailers is also very promising.
Exciting Results! The single biggest take away from this is a/ Vaping Growth b/ great vaping margin. The strategy to land and expand appears to be working well.
Clearly are achieving synergies and the new acquisitions will only increase this. Really delighted with what I'm seeing.
Join us on 22nd July for an investor presentation from Supreme PLC.
CEO Sandy Chadha and CFO Suzanne Smith will be hosting a webinar on their FY results for all investors, and questions are welcome!
Register on the following link: https://www.equitydevelopment.co.uk/news-and-events/supreme-investor-presentation-july-2021
Briiliant research, thanks. That would tie in with exactly with how Supreme has bought assets previously at knockdown prices and entered them it its supply chain. Battle bites for example.
I have researched a bit more. The brands acquired were owned by SCI-MX Nutrition Ltd. Its last filed accounts were for the y/e 29th December 2019. Sales in 2019 were 13.4m down about £1m from 2018. The 2019 accounts were filed at the end of Dec 2020 and contain a note stating that revenues had fallen by over 50% from April 2020 onwards (surprise, surprise). The balance sheet was bust (£11m net liabilities), getting worse and supported only by holding company guarantees.
So I am guessing the brands changed hands for petty cash - the real consideration being the purchase of the inventory by SUP. The branded stock will get sold in Supreme's hands but was probably virtually worthless to SCI-MX Nutrition Ltd which would not have been able to justify continuing trading post-covid.
SCI-MX and PRO2GO had traction pre-covid in gyms where (I think) most of their sales occurred, so they ought to be a great fit with Supreme's existing health brands. Gross margins pre-covid were falling into the low 30%'s but I am sure our CEO will fix that very quickly indeed. So this looks like being a very cheap way of buying +/- £10m sales at what will probably be a 50%+ margin going forward. Not a bad bit of business.
GLA
GS
Well, its certainly what I was hoping Sandy would do and he's certainly delivering acquistions and bolt ons. Just a pity no mention of what the price is or whether its will earnings enhancing.Thats probabaly led to the muted reaction . Nevertheless the ROCE by Supreme has been nothing short of spectacular to date so I'm sure it will be more of the same.
Roll on the results.
The Empire grows - I love this business which seems to be going from strength to strength. And I love bolt on acquisitions without dilution. What is a bit strange about the RNS today is it is "opaque" as to how much has been paid and what the acquisition brings to SUP in terms of expected revenues/profit/cash. As £1.3m of stock is not very much, this may not be that big a deal. But it smells like another earnings enhancing deal.
GLA
GS
RNS out today. Nice little earnings enhancing cash buy at somewhere between 3-4x EBITDA with cross-selling opportunities as well. RNS suggests it will help SUP sell better into the EU. Whether it does that or not, it still looks a sweet deal.
GLA
GS
Had my first nibble today at 50%, remaining 50% if or when the markets drops.
My Twitter feed tells me that is Simon Thompson in the Investor's Chronicle.
GS
Fantastic coverage today by a well known value investor. I presume their subscribers will get it tomorrow. Very in depth and huge positive hence the mark up today.
The only thing I would add to it is Supreme(Sandy) is very acquisiitive with incredible ROCE which will be immediately accretive to earnings so I would hope we will see a few of those in the current year with such a strong balance sheet.
Got high hopes here - like the look of the company and the boss. I'm a vaper and gym goer myself and can see the growth potential.
https://static.theceomagazine.com/content/downloads/pdf/EU-2016.04-I_Sandy_Chadha_-_Supreme_Imports.pdf
Many thanks ,chacha .
I've also asked Equity Development who do some great research and presentations (recently did one on UPGS for example) to get in touch in this regard.
Noted thank you
Chacha,
Could you please make sure that you give a live results presentation to retail investors so it will give us a chance to ask questions and listen to your views along with your team.
Companies , such as PI World, investormeet etc all do this for companies and I'm sure would be delighted to have Supreme do such a presentation.
The update is good but I was clearly expecting more. The broker forecast on IPO was too punchy but this years forecasts look way more conservative.
Looking ahead we have vitamins launch at anytime and hopefully a high profile launch.
Excellent performance. I might have been even happier with more EBITDA, but Revenues, EBITDA and Cash are all up, trading is ahead of expectations and management is confident for the future. Inevitably this will mean upward revision to forecasts and (after some profit-taking) a continued rise in the sp. No mentionof dividend, but we already know the distribution policy is strong so all in all I am a very happy holder.
GLA
GS
Looking at the broker forecasts, Berenberg are going for y/e 4/2023 of 139million revenue and 23.50 mill ebitda up from 122 mill and 18.80 for the year just passed 3/2021 , I just cant see those not being smashed.
The founder is aggressive in accretive, cheap acquisitions and has low capex. Moreover , he doesn't just want to be a 3rd party supplier once he has scale .he wants to manufacturer in house to improve margins.
I'm hoping for a forecast busting trading statement this month.
This is just a growth company and deserves a premium rating . On that basis , I'm about to add another 50-100k shares in a few minutes.
@chacha550
I'm impressed with todays news. Tomorrow i shall be investing more into Supreme.
Mark.
I was in our local McColls the other day, feeding my addiction with a bar of CDM and while standing in the socially distanced queue was interested to see the placement of the 88vape display - I did not notice it last time I was in there. Right at checkout so you have plenty of time to choose while you are queueing. I suspect that is where the high turnover/impulse buy product lines are put. And 1100 outlets can't be bad. Onwards and upwards.
GLA
GS
I am not sure what the fuss is about. This is up about 25% since I bought, it has a broker target of 220p and the dividend should be OK. Am I missing something?
GS