UK vapes-to-batteries business Supreme has bolstered its presence in sports nutrition with the acquisition of FoodIQ.
London-listed Supreme said it had bought FoodIQ UK Holdings out of administration for £175,000 ($222,433).
FoodIQ, based in Hayes in the west of the UK capital, appointed administrators last month. The company has manufactured for Supreme in the past. Supreme is the owner of the Sci-Mx sports-nutrition brand.
In a stock-exchange filing, Supreme said the deal gives the business “a purpose-built, state-of-the-art, accredited, automated contract manufacturing facility”. The company added the site, which opened 18 months ago, will increase its “wellness manufacturing capacity by around 40%”.
Supreme CEO Sandy Chadha said the deal would help the group meet “growing demand”. Chadha added: “We have used FoodIQ in the past to manage capacity requirements in our sports nutrition and wellness division so are familiar with their capability.”
Supreme booked its half-year results in November. In the six months to the end of September, the company generated revenue of £105.1m, up 63% on a year earlier. Pre-tax profits more than doubled to £12.3m.
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The revenue from Supreme’s sports nutrition and wellness arm grew 17% to £8.9m. The division’s gross profit margin was 27%, versus 18% in the corresponding period a year earlier as pressure from raw-material costs eased and amid “gains in our manufacturing techniques”, Supreme said at the time.
Vapes is Supreme’s largest division by revenue, bringing in £42.1m during the period.
Overall, the group’s revenue for the year to 31 March 2023 was £155.6m, an increase of 19% on 12 months earlier. Profit before tax was down 11% at £14.4m.
