UK-Listed Consumer Goods Group Supreme Sees Vape Duty as Potential Consolidation Opportunity, Holds FY27 Outlook
Supreme plc expects FY27 results to meet market expectations and sees the UK's new Vaping Products Duty as a consolidation opportunity.Summary
UK-listed consumer goods group Supreme plc said in a September 17 trading update that it continues to expect results for the year ending March 31, 2027, to meet market expectations, less than two weeks before the UK's Vaping Products Duty takes effect on October 1, 2026. Analyst consensus stood at £302.1 million of FY27 revenue and £39.6 million of adjusted EBITDA, and Supreme said trading had started the year in line with expectations after investing almost £5 million in its brands.
Rather than focusing solely on the additional cost of the flat £2.20 per 10ml duty, Supreme described the new tax and compliance regime as a potential business opportunity, saying smaller operators with less financial and operational capacity could face a significant compliance burden, potentially leading to market consolidation. Supreme said its financial resources, manufacturing platform and compliance capabilities could allow it to gain market share.
In FY26, Supreme's Vaping division, its largest, saw revenue rise 15% to £148.1 million from £129.0 million, driven entirely by organic growth, including expanded distribution of Hayati and IVG, entry into Spain and the rollout of pod devices following the UK's disposable vape ban. Group revenue rose 17% to £270.2 million, adjusted EBITDA was broadly flat at £40.6 million, and adjusted net cash increased to £7.5 million. Chief Executive Sandy Chadha said the 88Vape brand will retain its value positioning under the new pricing regime.
(Source：2firsts.com)
