Supreme reports revenue growth, profit under pressure
By Josh White
Date: Tuesday 25 Nov 2025
(Sharecast News) - Supreme reported double-digit revenue growth in the first half, supported by recent acquisitions and solid underlying demand across its portfolio, although profit measures came under pressure from weaker performance in its batteries and lighting division.
For the six months ended 30 September, revenue rose 17% to £132.6m, with £15.4m of the increase coming from acquired businesses - Clearly Drinks, Typhoo and 1001 - and £4.2m from the core business.
Gross profit grew 13% to £38.4m, though the gross margin slipped by one percentage point to 29%.
Adjusted EBITDA was flat at £18.5m, held back by softness in the electricals and household categories.
Profit before tax fell 5% to £12.2m, while adjusted profit before tax declined 13% to £12.8m.
Earnings per share dropped 16% to 7.7p, and adjusted EPS fell 18% to 9.1p.
The group reported net debt including IFRS 16 leases of £20m, compared with £11.8m a year earlier.
On an adjusted basis, excluding lease liabilities, it moved to net cash of £4.1m from net debt of £2.3m in the prior period.
The interim dividend was set at 1.6p per share in line with the company's policy of distributing 25% of profit after tax.
Supreme said its strategy of earnings-enhancing acquisitions continued to diversify its product mix.
The group bought the 1001 carpet care brand in September and completed the acquisition of SlimFast UK and Europe after the period ended, adding around £30m of annualised revenue in total.
Typhoo Tea was now fully integrated, with a financial and operational turnaround underway, including a new UK manufacturing facility, rebranding and ongoing product development.
Vaping remained a core earnings driver, with the 'unified vaping' category delivering a 13% rise in revenue to £76.9m.
Supreme said it successfully navigated the market shift away from disposable vapes to pod systems while retaining all major listings and sales volumes.
The company also highlighted new product development in its drinks and wellness category, where management expected further organic and inorganic growth.
Supreme said it was seeing "solid sales traction" across its product base and remained confident of meeting market expectations for the full year.
It noted continuing weakness in electricals and household due to broader market decline but expected non-vape activities to contribute around half of annualised revenue going forward.
Supreme also pointed to a robust pipeline of potential acquisitions across multiple categories.
"I'm delighted to report another period of sales growth supported by organic growth coupled with the positive impact from acquisitions," said chief executive Sandy Chadha.
"Supreme is now home to over 40 brands and licenses, including Typhoo, SlimFast and 1001, with access to an extensive retail footprint.
"This unique market reach will continue to enable the business to further leverage our growing product portfolio, alongside developing new products to further expand our market share.
"We remain confident about the business and look forward to updating investors as we continue to evolve the business."
At 1039 GMT, shares in Supreme were down 6.25% at 157.51p.
Reporting by Josh White for Sharecast.com.
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