UK Supreme Reports H1 2024: Vape Sales Drop 13%, ELFBAR & LOST MARY Revenue Hits £30.3M

Nov.28.2024
UK Supreme Reports H1 2024: Vape Sales Drop 13%, ELFBAR & LOST MARY Revenue Hits £30.3M
UK vape distributor Supreme's H1 2024 report shows total revenue up 8% to £113 million. Vape category revenue fell 13% due to the upcoming ban on disposable vapes, while ELFBAR and LOST MARY brand sales grew to £30.3 million.

The UK e-cigarette distributor Supreme has released its half-yearly financial report for the period ending on September 30th. The report shows that revenue increased by 8%, reaching £113 million, compared to £105.1 million for the same period last year, according to a report by Asian Trader on November 27th.

 

Key highlights from the report:

 

  • Vape category revenue was £36.6 million, a 13% drop from £42.1 million last year, mainly due to strategic adjustments ahead of the disposable vape ban set for June 2025.

 

  • Sales of disposable vapes fell by 56% to £4.4 million, while non-disposable product revenue remained steady at £32.2 million.

 

  • Revenue from ELFBAR and LOST MARY disposable vapes totaled £30.3 million, a 15% increase compared to just three months of distribution last year.

 

  • Adjusted EBITDA grew by 22% to £18.5 million, driven by improved gross margins and tight cost control.

 

  • Supreme's non-vape annual revenue now exceeds £100 million, representing about 45% of total revenue.

 

The company also emphasized its shift towards the 88Nic brand, focusing on rechargeable pod systems, 10ml e-liquid refills, and nicotine pouches. These moves align with expected regulatory changes and further underscore Supreme's long-term commitment to supporting vaping as a smoking cessation tool.

 

The company CEO, Sandy Chadha, said: "The strength of our strategy and the proactivity of our teams means we are well-positioned for upcoming changes in the UK vaping sector. Non-disposable vapes account for the majority of our vaping revenue, and we continue to report growth in 10ml e-liquid refills."

 

"Adding well-recognized and trusted brands into Supreme's unrivaled distribution network across UK retail is central to our long-term growth strategy, and this acquisition reaffirms our ability to identify and execute quickly on M&A opportunities."

 

"We have experienced steady growth across our categories whilst seamlessly diversifying our portfolio through the acquisition of Clearly Drinks," Chadha said. "Through the acquisition of Clearly Drinks, we have achieved steady growth across our various product categories while also diversifying our product portfolio. Bringing a well-known and trusted brand into Supreme's distribution network in the UK retail sector is a core part of our long-term growth strategy, and this acquisition once again demonstrates our ability to quickly identify and execute merger and acquisition opportunities.

 

Supreme is projecting revenue of approximately £240 million for the 2025 fiscal year, with adjusted EBITDA of at least £40 million, thanks to sustained strong growth in its core categories and continued market adaptability.