#SUP Supreme Plc - 110p

Founder-led group selling FMCGs at budget prices, via discount retailers & supermarkets. Grows organically and via acquisition. UK govt support for vaping biz. Scope to grow sports/nutrition biz

Introduction

We have written about Supreme Plc in the past. The stock stands out to us right now as having made a huge amount of operational progress and very little share price progress since our last blog post, and as such this is an interesting juncture to refresh the case. Following the set-back to the Lighting business and the general inflation headwinds of 2022, we expect the company to bounce back strongly from now onwards. We expect it to beat earnings consensus in Mar 24 and then continue to re-rate as investors re-assess the quality of the business, now that it is increasingly dominated by own-manufactured and branded consumer staple product categories with high growth rates.