By Michael Susin


Supreme PLC shares bounced after the company said its outlook for fiscal 2025 is unaffected by the U.K. government's latest proposal to ban disposable vaping.

At 1531 GMT, shares were up 7.1% to 112.5 pence after falling 17% in earlier trading. Shares are up 2.3% on a 12-month basis.

The U.K. consumer-products manufacturer said Monday that the anticipated ban on disposable vapes by the end of 2025 is expected to cause a temporary increase in revenue given that retailers will roll out replacement vaping devices, such as pod-system vaping devices and refillable vape kits.

"The company expects that more than half of disposable vape activity will permanently transition to alternative forms of vaping," it said.

"Supreme welcomes this clarity and as a responsible business remains ahead of the curve, having already implemented a number of proactive measures, including narrowing and re-naming of flavours and tailoring packaging, as part of an ongoing commitment to eradicate underage vaping."

The company added that it expects around 75 million pounds ($95.3 million)--or 33%--of revenue for fiscal 2024 to be derived from disposable vapes. This represents adjusted earnings before interest, taxes, depreciation and amortization--which strips out exceptional and other one-off items--of GBP9 million.

The group said revenue for fiscal 2024 ending March 31 is expected to be at least GBP225 million, compared with the company-provided market expectations range of GBP210 million to GBP225 million. Adjusted Ebitda is expected to double to least GBP38 million, ahead of the market estimate of GBP32 million to GBP35 million.

Supreme proposed a GBP1 million share buyback program to reflect its confidence in the future value of the company.


Write to Michael Susin at michael.susin@wsj.com


(END) Dow Jones Newswires

01-29-24 1048ET