One of the benefits of investing in FMCG stocks is the repeat revenues and predictability, especially when combined with an equally fast moving and entrepreneurial management team.
Take Supreme PLC , a leading vertically integrated UK brand owner, licenser and distributor of FMCG products across Electricals (22% revenues), Vaping (55%) and Drinks & Wellness (22%). These non-perishable (& ambient) items are sold to over 3,000 retailers - and offer a blend of quality and affordability that satisfies even the most budget conscious tastes of cash strapped households.
Ok but how is the business faring?
Well today the company said positively that: “Following a solid start in H1’26, it was trading in line with March FY’26 expectations” (consensus: revenue £236m & Adjusted EBITDA £35.8m). What’s more, M&A “will remain a core driver of the growth strategy”, having completed the "earnings enhancing" £1.65m (plus £3m earnout) bolt-on of heritage household cleaning brand “1001” in August. A template which delivered similarly attractive returns from its purchases of Clearly Drinks Ltd (Jun’24 for £15.6m) and Typhoo Tea (£10.2m, Nov’24).
Elsewhere, Supreme continues to also navigate the evolving UK vaping market, having successfully managed the ban on disposable vapes, which came into effect on 1 June 2025, as well as the transition to pods and other vaping alternatives. All major customers have been retained, ensuring continued growth and stability.
Wrt the valuation putting the stock at 183p on attractive EV/EVITDA, EV/EBIT and PE multiples of 6.1x, 7.4x and 9.4x respectively – whilst sporting a 2.4% dividend yield too with Equity Development valuing hashtag#SUP at 225p/share.