Science in Sport has posted in its results for the six months to June 30th another narrowed loss of £0.2 million, compared with £0.6 million in H1 2019.
The business has in recent years been working to streamline its supply chain, removing costs and prioritising profitable segments of its business within both Science in Sport and PhD Nutrition, which it acquired in 2018.
Today’s half year results revealed that group revenue sat 5% down on last year’s at £23.6 million, though this was largely attributed to “severe” Q2 disruption caused by the ongoing pandemic.
Gross profit did however marginally tick upwards, illustrating the group’s efforts to fine tune its operations. £11.2 million was realised, £0.1 up on H1 2019. Margin improvements in both the digital and wider marketplace led to an improved gross margin of 47.7%, up from 44.8% in H1 2019.
Having raised £4.5 million in equity in April the firm’s balance sheet is well placed to ride out the remaining Covid-19 storm with £9 million cash available, substantially up from £0.5 million in H1 2019.
Stephen Moon, Science in Sport’s Chief Executive Officer, commented: “We acted quickly and decisively in March to restructure given the COVID-19 pandemic, and as a result, we stabilised business operations. We have used the last six months to take advantage of changing consumer preferences and accelerated our digital and marketplace strategy. Improved channel mix and pricing, together with significant supply chain efficiencies underpinned a strong gross margin. Subject to any further severe COVID-19 related impact, we feel we can build on this strong platform.”
“We are also looking through COVID-19 and intend to get back onto our proven growth trajectory, underpinned by science-led innovation and strong brand equity. Major projects in supply chain and technology are underway, to help support the next phase of digital and international growth. We remain positive about our long-term profitable growth strategy.”
The global sports nutrition market is now said to be worth £11 billion.