Total revenues also saw a substantial increase, surging by 42% year on year to £221.2million
Supreme, the distributor of ElfBar and Lost Mary vapes, has announced that it doubled its annual profit.
The company’s chief executive maintains that they are “not concerned” about a potential future ban on disposable vapes. The firm, which also manufactures and distributes products such as batteries, light bulbs, and protein powder, reported a “record financial performance” over the past year.
The company posted a pre-tax profit of £30.1million for the year ending in March, a significant increase from the £14.1million generated the previous year. Total revenues also saw a substantial increase, surging by 42% year on year to £221.2million. Supreme revealed that approximately a third of all its sales came from its disposable vapes, driven by its agreement to distribute ElfBar and LostMary into shops and major supermarkets like Tesco and B&M.
The company, which is based in Manchester where it also produces its own brand of disposable vapes and e-liquids, 88Vape, has a long-standing contract with the HM Prison and Probation Service to supply vaping products to UK prisons. Despite being “mindful of the UK Government’s highly publicised proposal to ban disposable vaping devices in a bid to combat under-age vaping,” as well as plans to introduce a new tax on vapes, the company remains optimistic.
Chief executive Sandy Chadha said that she was “not concerned” that the proposals will have “any long-term impact on Supreme as a responsible manufacturer and distributor”. The firm is throwing its full backing behind measures to combat under-age vaping in the UK, having already axed bold hues from the 88Vape packaging and opted for age-appropriate flavour names.
It also doubled down on its stance that vaping is a “credible, sustainable, and highly effecting smoking cessation tool”. Meanwhile, Supreme spotlighted growth within its sports nutrition arm, home to the likes of protein-packed Sci-MX products such as powder, shakes, and bars.
It also saw revenues edge up for its batteries division, which includes Energizer, Duracell and JCB, thanks to price hikes and an increase in the volume of sales. Banking on a string of profitable days ahead, Supreme is also sizing up potential acquisition targets. However, traders seemed less enthused with shares dipping roughly 5% as of Tuesday.
