How Is Supreme (LSE:SUP) Preparing For The Vaping Duty After Its AGM Trading Statement?
Supreme PLC reported solid trading at its AGM weeks before the UK Vaping Products Duty took effect in October, while expanding its drinks and wellness division.Summary
Supreme PLC (LSE:SUP) used its mid-September annual meeting to tell shareholders that trading in the current financial year is in line with market expectations after a solid start, following strong growth in revenue, earnings and cash for the year to the end of March. The update came only weeks before the UK's new Vaping Products Duty took effect at the start of October, adding a fresh layer of regulation to an industry already reshaped by the ban on disposable vapes earlier in the year. Supreme said it had invested in its brands to prepare, and its chief executive described its value-led vape brand as well placed under the new pricing environment, though the final impact on demand will only become visible in coming trading statements as retailers and wholesalers adjust inventory and pricing.
The company has also been building a second leg of growth through its drinks and wellness division, helped by the SlimFast acquisition and a full year of Clearly Drinks; these categories are less exposed to nicotine regulation and align with consumer interest in functional products. Several holdings notifications were published in August and September, and Supreme changed its nominated adviser and sole broker in the summer. Investors will now watch half-year reporting for evidence of how the duty changes have filtered through sales volumes, and for further bolt-on acquisitions that management says remain central to strategy.
(Source：Kalkine Media)
