According to an MSN report on July 2, the profits of e-cigarette brands 88Vape and ELFBAR, distributed through Supreme in the UK, nearly doubled within a year. The company described its financial performance as "outstanding" and announced a generous dividend.
In the fiscal year ending March 2024, Supreme's revenue increased by 42% from £155.6 million to £221 million, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 96% to £38.1 million, primarily benefiting from its distribution agreements with ELFBAR and LOST MARY.
Meanwhile, Supreme's profits have soared. The company reported that pre-tax profits and adjusted pre-tax profits increased from £14.4 million to £30.1 million and from £15.2 million to £30.7 million, respectively, during a period of "high cash generation.
Therefore, Supreme will propose a final dividend of 3.2 pence per share at its annual shareholders' meeting in September, bringing its total annual dividend to 4.7 pence per share, a 57% increase from last year.
The company's CEO Sandy Chadha stated:
Supreme showed excellent performance during this period, with strong growth in revenue across all five departments. Despite facing challenges, we remain committed to providing retail partners and customers with high quality, high value products. Operationally and financially, we are in a strong position to pursue organic expansion and, as demonstrated by our successful acquisition of Clearly Drinks in the past (and during this period), we will continue to evaluate complementary acquisition opportunities.
In March of this year, following a parliamentary vote to ban disposable e-cigarettes, Supreme's stock price plummeted from 133 pence to 102 pence in just a few days. However, since then the stock price has surpassed its previous levels, now trading at 177 pence.
Chada expressed no concern about the proposed ban on disposable e-cigarettes, as the bill does not have enough time to be passed before Parliament dissolves in preparation for the upcoming election.
From our e-cigarette business perspective, we are fully committed to supporting the eradication of underage vaping, allowing the industry to return to its core mission: helping adult smokers find an affordable, sustainable, and safer alternative. I am not concerned that the government's e-cigarette proposals will have any long-term impact on Supreme, as we are a responsible manufacturer and distributor with the resources and experience to adapt to potential new market dynamics.
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