20th Jul 2021 13:24
(Alliance News) - Supreme PLC on Tuesday reported a dip in full-year profit even as revenue increased.
Manchester, England-based Supreme is a manufacturer, supplier and brand owner of fast-moving consumer products.
Pretax profit for the year that ended March 31 was GBP13.0 million, a fall of 1.5% year-on-year from GBP13.2 million.
It posted revenue for the financial year of GBP122.3 million, a rise of 33% from GBP92.3 million. The increase in revenue was driven by its vaping division, in which revenue was GBP39.5 million, a rise of 36% year-on-year from GBP29.0 million. The Sports Nutrition & Wellness Division also showed strength as revenue increased by 38% from GBP5.0 million to GBP6.9 million.
However, cost of sales for the firm rose by 36% in the same period to GBP89.2 million from GBP65.7 million. Moreover, administration expenses increased by 54% to GBP19.4 million from GBP12.6 million.
Net debt was reduced to GBP7.6 million on March 31 from GBP21.3 million a year before.
The group's dividend policy is to pay an annual amount equivalent to around 50% of net profit. In line with the group's policy set out at IPO, the directors do not intend to declare a dividend in respect of the 2021 financial year.
The directors plan to declare its maiden dividend to shareholders following its interim results for the 2022 financial.
"Having successfully completed our IPO on the London Stock Exchange and delivering a record financial performance in the year ended March 31, the business is ideally placed for ongoing sustainable growth. We continue to invest in launching new products, as well as expanding both our manufacturing and distribution capabilities whilst maintaining a well-managed cost base," the company said.
The firm has made an encouraging start to the new financial year with strong demand across all divisions.
Its vaping division continues to be a key profit driver and its Sports Nutrition & Wellness division is poised for expansion following the launch of its Sea Lions and Millions & Millions vitamins brands and the acquisition of the brands and stock of Sci-MX Nutrition.
Shares in Supreme were down 3.7% at 194.00 pence each in London on Tuesday afternoon.
By Amrit Sahota; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Supreme Plc