LONDON (ShareCast) - (Sharecast News) - Consumer products manufacturer Supreme expects to have seen growth in both revenues and profits during the twelve months ended 31 March but cautioned that its 2023 performance will be tempered by commodity price inflation and increased overheads.
Supreme said on Tuesday that it had "performed strongly" throughout the 2022 trading year, driving organic growth across its core categories, completing two strategic acquisitions financed by free cash and establishing product traction with leading UK grocery customers.

As a result, Supreme expects to report revenues in excess of £130.0m, up from £122.0m twelve months earlier, and adjusted underlying earnings of no less than £21.0m, up from £19.3m in the prior year.

The AIM-listed group's vaping division was expected to report 10% revenue growth owing to new listings with Sainsbury's and Morrisons, as well as continuing growth across all of its discount retail customers, while its batteries and lighting divisions continued to show their defensive characteristics and were expected to report growth in revenue of around 2% and 5%, respectively.

Supreme stated its sports nutrition and wellness division continued to demonstrate its potential with 100% revenue growth. However, raw material price inflation, particularly recently in relation to whey powder, impacted profitability.

Looking at 2023, Supreme expects to deliver another year of profitable growth and increasing levels of cash generation, predominantly driven by its strong vaping sales footprint. However, the group cautioned that its overall performance will be tempered by commodity price inflation within sports nutrition and wellness and the increases in the overhead base relating to wage and transport costs.

As of 1050 BST, Supreme shares had slumped 18.6% to 154.26p.

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