UK-based sports nutrition specialist Science in Sport (SiS) has confirmed audited final results for the year ended 31 December 2016. The company has reported that revenues increased by 30% to £12.24 million (2015: £9.45 million) ‘significantly ahead of market growth, with particularly strong growth in online channels and International markets’.
SiS added that new product development continued to be a key growth driver and delivered £0.8 million of sales in the year (2015: £0.6 million) and contributed 29% of growth. The company’s newly launched Australian business reportedly performed ahead of plan, and SiS USA and Italy businesses were established in Q3 2016.
Gross profit increased to £7.4 million (2015: £5.5 million) with gross margin improving 1.8% to 60.3%, reflecting ‘factory efficiency improvements’. The company’s underlying operating loss (excluding depreciation and amortisation, non-cash share based payments and exceptional items) was £0.8 million (2015: £0.25 million). According to SiS, this is ‘in-line with expectations and growth strategy, reflecting continued investment in brand awareness, e-commerce and international expansion’.
Cash and cash equivalents were reported at £6.13 million (2015: £8.75 million); and SiS added that it has seen a strong start to 2017 sales, with its core UK and EU market forecast to be EBITDA positive this year.
Stephen Moon, Science in Sport’s CEO, said “This was a year of exceptional revenue growth for SiS where we continued to outperform our peers and grab market share in the highly attractive endurance sports nutrition sector. In line with our growth strategy, we continued to invest heavily in brand equity, marketing, product innovation, e-commerce and international markets, with the benefits evident in both our 30% increase in revenues and growing brand awareness in all markets.”
He continued, “Online and international growth has been particularly strong during 2016. Our new Australian business delivered sales ahead of plan and in the second half we launched e-commerce websites in the USA, Italy, Germany and Netherlands. Our scienceinsport.com business doubled in size in the year.
“Our model is working, we have exceeded our revenue growth targets, and we are committed to our strategy of investing in science, brand, e-commerce and international markets. We expect our core UK and EU business to be EBITDA profitable in 2017 and we will deploy cash to support growth in international markets.”