According to an MSN report on July 2, the profits of e-cigarette brands 88Vape and ELFBAR, distributed through Supreme in the UK, nearly doubled within a year. The company described its financial performance as "outstanding" and announced a generous dividend.
In the fiscal year ending March 2024, Supreme's revenue increased by 42% from £155.6 million to £221 million, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 96% to £38.1 million, primarily benefiting from its distribution agreements with ELFBAR and LOST MARY.
Meanwhile, Supreme's profits have soared. The company reported that pre-tax profits and adjusted pre-tax profits increased from £14.4 million to £30.1 million and from £15.2 million to £30.7 million, respectively, during a period of "high cash generation.
Therefore, Supreme will propose a final dividend of 3.2 pence per share at its annual shareholders' meeting in September, bringing its total annual dividend to 4.7 pence per share, a 57% increase from last year.
The company's CEO Sandy Chadha stated:
Supreme showed excellent performance during this period, with strong growth in revenue across all five departments. Despite facing challenges, we remain committed to providing retail partners and customers with high quality, high value products. Operationally and financially, we are in a strong position to pursue organic expansion and, as demonstrated by our successful acquisition of Clearly Drinks in the past (and during this period), we will continue to evaluate complementary acquisition opportunities.
In March of this year, following a parliamentary vote to ban disposable e-cigarettes, Supreme's stock price plummeted from 133 pence to 102 pence in just a few days. However, since then the stock price has surpassed its previous levels, now trading at 177 pence.
Chada expressed no concern about the proposed ban on disposable e-cigarettes, as the bill does not have enough time to be passed before Parliament dissolves in preparation for the upcoming election.
From our e-cigarette business perspective, we are fully committed to supporting the eradication of underage vaping, allowing the industry to return to its core mission: 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 are a responsible manufacturer and distributor with the resources and experience to adapt to potential new market dynamics.
We welcome news tips, article submissions, interview requests, or comments on this piece.
Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn
Notice
1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.
2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.
3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.
4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.
Copyright
This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.
For copyright-related inquiries, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.
We welcome any corrections or feedback. Please contact us at: info@2firsts.com
