Last checked at 19 Jan 2022 07:00
19 January 2022
AIM: SIS
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").
Science in Sport plc
("Science in Sport", "the Company" or the "Group")
Pre-Close Trading Update and Notification of Final Results
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 financial year ended 31 December 2021.
Results Overview
The Group performed well during the year and ahead of expectations, delivering an underlying EBITDA1 of £2.2 million (FY 2020: profit of £1.1 million) driven by revenue growth of 25% (FY 2020: nil) to £62.7m (FY 2020: £50.4m).
PhD Nutrition, a premium active lifestyle nutrition brand, grew by 19% to £29.7m (FY20: £24.9m). SIS, a leading endurance nutrition brand among elite athletes and professional sports teams, generated £33.0m, 30% ahead of the previous year (FY 2020: £25.4m). Product innovation delivered 32% of revenue growth.
Underlying EBITDA1 increased to £2.2m, continuing the strong upward trend (FY 2020: £1.1m) despite inflationary headwinds. Gross margin increased to 50% (FY 2020: 49%), driven by supply chain efficiencies, continued sales shift to online, and pricing, more than offsetting commodity price increases.
The accelerated capital investment programme delivered a new customer data platform, which improved revenue per visit to our digital platform by 8% from installation in May to year-end. We invested in the first phase of the new supply chain facility in Blackburn, scheduled to open in late Q1 2022, when we expect immediate reductions in logistics costs.
Reflecting the accelerated investment, the Group's cash at bank on 31 December 2021 was £4.9m, in line with management expectations (31 December 2020: £10.5m).
1 before interest, tax, depreciation, amortisation, share-based payments and foreign exchange variance on intercompany balances
Online sales
Online sales rose strongly by 40% to £35.0m (FY 2020: £25.0m). Online sales via the Group's digital platforms were up by 28% and 53% via third-party marketplace sites.
The previous online monthly sales record was exceeded four times in the second half, including setting a new sales record over peak November trading.
In the important market of the US, sales increased by 46%. PhD Japan which launched in the first half performed ahead of plan in the second half.
Online sales accounted for 56% of total sales (FY 2020: 50%) and remain a critical driver of ongoing growth.
Retail sales
Despite being adversely impacted by pandemic restrictions, UK retail sales rose by 12% to £18.1m (FY 2020: £16.1m). International retail sales at £9.7m were up by 4% (FY 2020: £9.3m). These results were after exiting over 60 sub-scale international accounts in late 2020 to focus on scale markets.
Date of publication of final results
The Board expects to publish final results on 16 March 2022, when it will provide a further update on current trading.
Stephen Moon, CEO of Science in Sport plc, said:
"The Group has performed well and delivered profitable revenue growth. This very encouraging performance reflects the strength of our premium brands which continue to drive strong underlying EBITDA growth."
"Growth is across all channels and key markets, especially online. Online sales increased by 40% and now account for 56% of total sales, up from 50% a year ago, underpinned by our increased investment in technology. Retail sales grew consistently over the year both in the UK and internationally."
"Prospects for further progress in 2022 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 | |
Davy (Joint broker) Graham Hertrich, Sonya Vidiartkhi, Marco Schwartz |
T: 020 7448 8871 |
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 sell through the Company's phd.com and scienceinsport.com digital platforms, third-party online sites, including Amazon and Tmall, and 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 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.
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 330 professional teams, organisations and national teams worldwide, including INEOS Grenadiers Cycling Team. SiS supplies more than 150 professional football clubs in the UK, Europe and the USA. SiS is Performance Research Partner to the English Football Association and Official Vitamins and Supplements Partner to the Milwaukee Bucks, 2021 National Basketball Association Champions.
For further information, please visit phd.com and scienceinsport.com