Premium performance nutrition company, Science in Sport (SiS) has announced its audited final results for the year ended 31 December 2018. SiS saw a 37% increase in group revenue to £21.3 million in 2018 (2017 – £15.6 million). This included a 25‐day contribution of £1.5 million from PhD Nutrition, which was acquired on 6 December 2018.
Underlying revenue for SiS was £19.8 million. This rose 27% year on year – with ‘acceleration in growth during H2 to 34% reflecting first half investment initiatives’.
SiS noted that its revenue growth was significantly ahead of the sports nutrition sector overall. There was particularly strong growth in online channels (+26%) and international markets (+55%) ‘driven by consistent investment in marketing resulting in significant brand awareness improvement versus the group’s competitors’.
New product development was a key growth driver. This delivered £1.1 million of revenue in 2018 (versus (£0.9 million in 2017) and contributed to 26% of overall revenue growth.
Overall group gross profit increased to £12.0 million (2017 – £9.3 million) including £0.4 million gross profit following the acquisition of PhD.
The company added that its underlying operating loss was £2.5 million (2017 – £1.7 million). This excludes depreciation, amortisation, non-cash share based payments and costs relating to the acquisition of PhD Nutrition. SiS noted that the operating loss was ‘in line with growth strategy and expectations, reflecting continued investment in brand awareness, e-commerce and international expansion.’
In December, SiS acquired PhD, a premium performance nutrition brand, for £32.0 million. PhD contributed £0.1 million of operating profit in 2018; and integration plans are reportedly on track.
Stephen Moon, Science in Sport’s CEO, said “We were delighted to have acquired the PhD business and its excellent management team. Integration is on track to maximise the potential of the combined group. Our ambition is to build the world’s #1 premium performance nutrition business. In the last five years the Science in Sport business has delivered sales compound annual growth rate (CAGR) of 25% and with our proven strategy and the PhD acquisition, the Board remains confident of continued strong growth in 2019 and beyond.”
He continued, “2018 was another period of very strong growth, the sixth consecutive year where SiS has significantly outperformed the sector. We saw strong performance in all online channels and international markets. Our strategy of consistent investment in brand equity, our best in class e-commerce platform and product innovation contributed to this success.
“Continuing improvements in factory and supply chain efficiencies underpinned a very robust gross margin. Our core business generated operating profits of £2.0m.”