ELFBAR UK Distributor Supreme: ELFBAR And LOST MARY Distribution Boosts Profit Surge, Revenue Increases 42% To £221 Million

ELFBAR UK Distributor Supreme: ELFBAR and LOST MARY distribution boosts profit surge, revenue increases 42% to £221 million

Supreme, a UK e-cigarette distributor, saw revenue grow 42% in the year ending March 2024, from £155.6 million to £221 million, while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) surged 96% to £38.1 million, mainly benefiting from its distribution agreements with ELFBAR and LOST MARY.

According to MSN on July 2, Supreme, the UK distributor of e-cigarette brands 88Vape and ELFBAR, almost doubled its profits in a year. The company called its financial performance "excellent" and announced a generous dividend.

Supreme's revenue grew 42% in the year ending March 2024, from £155.6 million to £221 million, while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) surged 96% to £38.1 million, mainly benefiting from its distribution agreements with ELFBAR and LOST MARY.

At the same time, Supreme's profits soared. The company said pre-tax profit and adjusted pre-tax profit increased from £14.4 million to £30.1 million and from £15.2 million to £30.7 million respectively during a "high cash generative period".

As a result, Supreme will recommend a final dividend of 3.2 pence per share at its annual general meeting in September, bringing its total annual dividend to 4.7 pence per share, up 57% on last year.

CEO Sandy Chadha said:

"Supreme performed exceptionally well during the period, with strong revenue growth across all five divisions. Despite the challenges, we remain committed to providing high-quality, high-value products to retailers and customers. Operationally and financially, we are in an excellent position to expand organically, and as we have demonstrated in the past (and later in the period through the successful acquisition of Clearly Drinks), we will continue to evaluate complementary acquisition opportunities."

In March, Supreme's share price plummeted from 133 pence to 102 pence in a few days after Parliament voted to ban disposable e-cigarettes. But the share price has since surpassed that level and is now trading at 177p.

Chadha said he was not concerned about the bill to ban disposable e-cigarettes, which did not have time to pass before Parliament was dissolved in preparation for the general election.

"From our e-cigarette business, we are fully committed to supporting the elimination of underage vaping, enabling the industry to return to its core purpose: helping adult smokers find an affordable, sustainable and safer alternative. I am not concerned that the government's e-cigarette proposals will have any long-term impact on Supreme, as we have the resources and experience as a responsible manufacturer and distributor to adapt to potential new market dynamics."