UK-based sports nutrition company Science in Sport (SiS) has announced its unaudited results for the six months ended 30 June 2017. During the first of half 2017, revenues increased 27.6% to £8.27 million (versus £6.48 million in first half 2016). SiS added that it demonstrated continued strong growth, with the company’s e-commerce platform delivering 87% growth across all markets. All e-commerce channels now account for 51% of total revenues (versus 46% in first half 2016).
International sales performed strongly with growth of 55% year on year, driven by increased investment in the USA and Italy… ‘which are trading in line with expectations, as is the Australian business. International revenue accounts of 27% of total revenue (H1 2016: 22%)’.
Strategic investment in international market expansion and the company’s e-commerce business resulted in an underlying operating loss of £1.14 million (excluding depreciation, amortisation and share based payments). The company added that this loss was ‘in line with expectations and growth strategy’.
The company added that its core UK and EU business should break even at the half year point and is on track for a profitable second half, given a first half phasing of marketing investment. SiS added that ‘increased input prices on raw materials and growth in protein products have been absorbed through increased efficiencies, leaving overall gross profit unchanged at 58.8%.’
SiS new product development and product launches have continued with GO Caffeine Shots launched in the first half of 2017. The second half of 2017 got under way with SiS WHEY20 relaunched in July 2017 and GO Energy + Immune Gel and REGO Rapid Recovery Plus launched in August 2017.
Stephen Moon, Science in Sport’s CEO, said “I am pleased that we have had such a strong start to the year in a difficult market of rising input costs and uncertain consumer spending. We have achieved yet another period of substantial growth, which was in line with our expectations, and saw revenues increase 28% year on year.”
“We have invested heavily in international markets during the first half; and trading is in line with expectations in Australia, Italy and the USA. We have also seen exceptionally strong growth from our own e-commerce platform. Our strategy of focusing on online and international growth is delivering results.”
“Operating losses are in line with expectations and reflect our investment in category leading growth in new markets and digital channels. The core business is expected to be profitable at EBITDA evel for the full year and we will continue to invest in strategic international markets. Costs remain tightly controlled and gross margin is very robust in a difficult climate. We remain confident in our growth-led strategy.”