Investors story
Supreme is a leading manufacturer and supplier of branded and licensed consumer products, operating across five primary divisions: Batteries, Lighting, Vaping, Sports & Nutrition and Consumer Household Goods. Supreme supplies the discount retail, wholesale, independent retail, supermarkets and export sectors. Supreme’s product mix incorporates complementary, high repeat and non-discretionary purchases.
Key strengths
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A vertically integrated platform providing an excellent route to market for brands and products.
Supreme’s capabilities span from product development and manufacturing through to its extensive distribution network.
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Attractive financial profile and consistent record of delivering growth.
Revenues increased to £92.3 million and adjusted EBITDA increased to £16.2 million in the year ended 31 March 2020.
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An extensive and diverse customer base.
Over 3,300 active business accounts with retail customers who manage over 10,000 branded retail outlets.
Customers include B&M, Home Bargains, Poundland, The Range, Sports Direct, Booker, Londis, SPAR, Costcutter, Asda, Halfords and Iceland.
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Long-term entrenched supplier relationships.
Supreme has longstanding partnerships with Duracell, Panasonic, Energizer and JCB.
In the year ended 31 March 2020, the Group sold c. 200 million batteries and c. 23 million individual lighting products.
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Exposed to growing underlying markets with high repeat and non-discretionary customers.
Vaping market expected to grow at a 13% CAGR from 2019 to 2022 supported by UK public health bodies and shifting consumer preferences.
Sports nutrition and vitamins markets expected to grow at 9% and 7% CAGR from 2019 to 2022 respectively.
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Leading vaping brand protected by significant barriers to entry.
Supreme’s 88Vape brand proven to be the most visible vaping brand in the UK.
Since September 2019, the Group has manufactured over 250,000 bottles of e-liquid per working day and in the year ended 31 March 2020, Supreme sold c. 45 million bottles of e-liquid and c. 794,200 vaping hardware kits.
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Growing footprint in Sports Nutrition and Wellness.
The Group entered this segment in February 2018 and has already grown this category to generating c. £5.0 million revenues.
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Environmental, social and governance standards are at the forefront of business considerations.
Vaping is widely accepted as aiding smoking cessation and reducing the significant negative impacts of smoking.