- Trading ahead of full-year earnings estimates
- Vaping category reports 72 per cent revenue growth
- Lighting category recovering
Supreme (SUP:109p), a distributor and manufacturer that sells a range of products to discount retailers and supermarkets (B&M, Home Bargains and Poundland are all customers), has issued its third positive trading update since last autumn, prompting analysts to upgrade their earnings estimates again.
The group's vaping division has been the key driver, delivering exceptional organic growth from its flagship brand, 88vape.com, earnings-accretive acquisitions (Liberty Flights, Cuts Ice and Flavour Core), market share gains in e-liquids and favourable market conditions. These positive trends look set to continue and are being aided by the UK government’s recently renewed efforts to reduce the prevalence of smoking, targeting vaping as a safer alternative and offering 1mn smokers over the next two years a free vaping starter kit to tempt them to give up tobacco.