Supreme has stated that it expects to "significantly outperform market expectations" in the current financial year, despite the recent Government proposal on the ban of disposable vapes.

The manufacturer, distributor and brand owner of fast-moving consumer products, including vapes, batteries and nutrition and wellness products, said that revenue is projected to be at least £225m, with an adjusted EBITDA of £38m, double the amount in the previous financial year.

The group said that this success highlights its continued strategic development and record levels of organic growth across its core business division, with the ElfBar vape distribution opportunity now expected to significantly exceed previous guidance.

As part of the statement, Supreme said that it welcomed the clarity of the Government’s proposed ban on disposable vapes, and that its has already implemented a number of “proactive measures” to eradicate underage vaping, such as a narrowing and renaming of flavours.

However, in its outlook statement, the firm said that it believes that ban on disposable vapes by the end of 2025 is expected to cause a temporary increase in revenue as retailers roll-out replacement vaping devices.

Currently, Supreme predicts that 33% (£75m) of its expected revenue and 23% of its adjusted EBITDA will come from disposable vape sales.

Alongside this trading update, the firm announced that it is set to launch a £1m share buyback programme over the next three months, following on from “operational success and strategic response to regulatory changes and the board’s ongoing confidence in the market”.

Chief executive officer at Supreme, Sandy Chadha, said: "Supreme is at the forefront of the UK vape market, consistently innovating and expanding our reach. The UK Government's latest proposals, many of which Supreme has already proactively embraced, support our strategic direction and focus. As a responsible vaping supplier, we welcome changes that help prevent underage vaping and will work with our various stakeholders to work through the proposed legislation. Our early initiatives and strong customer partnerships are testament to our resilience and long-term vision.

“We remain extremely excited by the future and believe we are ideally placed to continue to expand both our operational and financial footprint across our key growth markets. The buyback proposed today reinforces the confidence we have in the business across the long term."

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