Sales reach new high despite margin pressure
Supreme plc (LSE:SUP) reported record revenue for the year ended FY26, with sales increasing 17% to £270.2 million as recent acquisitions and continued growth in its Vaping division drove expansion across the business.
Adjusted EBITDA remained broadly unchanged at £40.6 million despite lower margins and a decline in earnings per share. The company also generated strong operating cash flow, returned to an adjusted net cash position and increased its total dividend by 4%, highlighting the strength of its balance sheet and supporting continued investment in manufacturing capacity and brand development.
Acquisitions expand drinks and wellness portfolio
The group’s Drinks & Wellness division recorded revenue growth of 60% to £69.3 million, benefiting from the additions of SlimFast and Clearly Drinks.
During the year, Supreme invested around £6 million in new production facilities, including its wellness manufacturing site, The Hive, and expanded tea production through Typhoo. The company also strengthened its portfolio through the acquisitions of SlimFast and 1001, secured new drinks licensing agreements with Carabao and Tonino Lamborghini, and continued expanding its international footprint. Management believes these initiatives position the business to benefit from consolidation within the vaping market while increasing diversification across multiple fast-moving consumer goods categories.
Strong fundamentals offset weaker technical signals
Supreme’s investment outlook is supported by robust financial performance, successful acquisitions and continued strategic expansion, all of which have contributed to strong revenue growth.
The shares also benefit from an attractive valuation. However, technical indicators remain weaker, with recent price action pointing to negative short-term momentum that may temper investor sentiment.
More about Supreme PLC
Supreme plc is a UK-based manufacturer, distributor and brand owner operating across the Vaping, Drinks & Wellness, and Electricals & Household sectors. The company manages a vertically integrated business model spanning product development, manufacturing and distribution, supplying more than 3,000 business customers and approximately 55,000 retail outlets with a combination of proprietary and third-party consumer brands.
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