Science in Sport beats 2021 expectations, new build comes online shortly

Science in Sport has delivered a FY21 performance “ahead of expectations” having doubled underlying EBITDA from £1.1 million to £2.2 million and registered a 24% revenue growth to reach £62.5 million.

2021 was a year where the business expanded its capabilities with investment in a brand new premises, designed to help bolster the firm’s supply chain and accommodate for further sales growth. This facility will come online in April, with gel manufacturing being fully operational in July.

That growth is increasingly coming from online sales and exports, of which the USA is building some of the greatest momentum, adding 50% in trade to reach £5.1 million. This was helped along with alignments in the NBA and NFL. 330 global elite sports teams are customers of SiS.

The outlook for the business moving forwards is bolstered by the improved efficiencies of the business going forwards, but even before coming online January and February’s trade is up 18% on the same period in 2021, while March looks set for a record growth, according to the business.

Science in Sport told shareholders “Gross margin is robust with input price increases offset by supply chain efficiencies, favourable channel mix, and price increases implemented across all channels.”

While there is no mention specifically of cycling products in this release, product innovation is delivering for the business and generated 32% of total revenue growth.

Stephen Moon, Science in Sport’s Chief Executive Officer, commented: “The Group has performed well and delivered strong revenue growth. This very encouraging performance reflects the strength of our science-led premium brands which continue to drive strong underlying EBITDA growth.”

“We saw revenue growth in all channels and key markets, especially online. Online sales increased by 40% and now account for 56% of total sales, up from 50% a year ago, underpinned by our increased investment in growth technology. Our profitable retail sales grew well in the UK and internationally.”

“Prospects for further progress in 2022 look strong, following a good start to the year. While there are input price and supply chain headwinds, we believe that our efficient operations will deliver efficiencies to significantly mitigate such costs. Our revenue, profitability and cash generation ambitions are unchanged and we will continue to invest in the key drivers strategically.”