Last checked at 14 Jul 2021 07:00
14 July 2021
AIM: SIS
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.
Science in Sport plc
("Science in Sport" or "the Company")
Half Year Trading Update
Returning to 20%+ Revenue Growth
Science in Sport, the premium performance nutrition company serving elite athletes, sports enthusiasts and the active lifestyle community, is pleased to announce a trading update for the first six months of its current financial year ending 31 December 2021.
Results Overview
After an encouraging start in January and February, sales continued to recover well, gaining momentum through the second quarter, with record monthly sales in June. This period of profitable growth, together with positive prospects for the second half, including new product launches, places the Company in a strong position to meet market expectations for the full year.
Revenue for the first six months increased by 24% to c. £29.3m, over the same period last year (H1 2020: £23.6m). Both brands, PhD Nutrition, an active lifestyle nutrition brand, and SIS, a leading endurance nutrition brand among elite athletes and professional sports teams, contributed strong double-digit growth, generating sales of £13.4m and £15.9m respectively (H1 2020: PhD, £11.7m, and SIS, £11.9m). New product launches accounted for 26% of revenue growth in H1.
Underlying EBITDA1 profit increased to £0.6m, continuing the strong upward trend (H1 2020: loss of £0.2m), and after an estimated one-off £0.6m negative impact from Brexit. Gross margin increased to 52% (H1 2020: 48%), driven by supply chain efficiencies and continued sales shift to online.
The Company's capital investment programme was accelerated, with £2.7m expended in the first half, compared to £0.9m in the same period last year. This investment supported the launch of a new customer data platform, which will drive ongoing online sales growth, and the first phase of investment at the new supply chain facility in Blackburn, which is currently scheduled to open in late Q1 2022. Significant further investment is planned in H2.
Reflecting the accelerated investment, the Group's cash position at 30 June 2021 was £8.2m (31 December 2020: £10.5m), slightly better than expected. The Company has an £8.0m debt facility, which remains unused.
1 before interest, tax, depreciation, amortisation, share based payments and foreign exchange variance on intercompany balances
Online sales
Online sales rose strongly, up by 44% to £15.7m (H1 2020: £10.9m). Online sales via the Group's own digital platforms were up by 35% and via third-party marketplace sites up by 53%.
In the important market of the US, sales increased by 60% to £2.4m (H1 2020: £1.5m), and PhD and SiS websites were launched in Japan and South Korea, supporting international expansion plans. Further site launches in the Middle East and India are scheduled for the second half.
Online sales accounted for 54% of total sales in the first half (H1 2020: 46%), and remain a key focus of investment as part of the strategic growth plan.
Retail sales
Despite being adversely impacted by pandemic restrictions, UK retail sales rose by 8% to £8.4m (H1 2020: £7.7m). International retail sales at £5.2m were 6% ahead (H1 2020: £4.9m). These results were after exiting over 60 sub-scale accounts in late 2020, as part of a refocusing on key accounts in scale markets.
Date of publication of interim results
The Board expects to publish interim results in mid September 2021 when it will provide a further update on current trading.
Stephen Moon, CEO of Science in Sport plc, said:
"The Group has regained its growth momentum after the unprecedented global disruption of the pandemic in 2020, returning to 20%+ growth rates. This very encouraging performance reflects the progress achieved in 2020 and the strength of our premium brands, and will help to drive strong underlying EBITDA growth.
"Growth is across all key markets, especially online, which is a key strategic area for us. Online sales increased by 44%, and now account for 54% of total sales, up from 46% a year ago, underpinned by our increased investment in online technology. Retail sales both in the UK and internationally moved past last year's comparatives and have further to go.
"Prospects for further progress in the second half look strong, and our long-term growth strategy remains unchanged."
Science in Sport plc | T: 020 7400 3700 |
Stephen Moon, CEO | |
James Simpson, CFO | |
Liberum (Nominated adviser and broker) | T: 020 3100 2000 |
Richard Lindley, James Greenwood, Will Hall | |
KTZ Communications | T: 020 3178 6378 |
Katie Tzouliadis, Dan Mahoney |
About Science in Sport plc
www.sisplc.com
Headquartered in London, Science in Sport plc is a leading sports nutrition business that develops, manufactures and markets innovative nutrition products for professional athletes, sports and fitness enthusiasts and the active lifestyle community. The Company has two highly regarded brands, PhD Nutrition, a premium active-nutrition brand targeting the active lifestyle community, and SiS, a leading endurance nutrition brand among elite athletes and professional sports teams.
The two brands are sold internationally through the Company's phd.com and scienceinsport.com digital platforms, third-party online sites, including Amazon and Tmall, and an extensive retail distribution in the UK and internationally, including major supermarkets, high street chains and specialist sports retailers. This omnichannel footprint enables the Company to address the full breadth of the sports nutrition market, forecast to be £13 billion worldwide by 2023.
PhD is one of the UK's leading active nutrition brands with a reputation for high quality and product innovation. The brand has grown rapidly, based on its core protein powders, since its launch in 2005. The range now comprises powders, bars and supplements, including the high protein, low sugar range, PhD Smart. PhD brand ambassadors include leading fitness influencers Ross Edgley and Obi Vincent. The PhD brand is an official partner to the Tough Mudder Challenge and Race Series.
SiS, founded in 1992, has a core range comprising gels, powders and bars focused on energy, hydration and recovery. SiS is an official sports nutrition supplier to over 250 professional teams, organisations and national teams around the world, including INEOS Grenadiers Cycling Team. SiS supplies more than 150 professional football clubs in the UK, Europe and the USA and is Performance Research Partner to the English Football Association.
For further information, please visit phd.com and scienceinsport.com