Science in Sport has resumed a %20+ growth rate, driven in large part by a 44% increase in online sales and supported by steady investment into this area of the business.
Accounting for £15.7 million in the first half, the firm’s online offering led a financial update that had marginal gains across the board, with retail sales even turning to growth, despite the pandemic continuing to harm the economy’s progress. Shop based sales were up 8% to reach £8.4 million in the first half of the year. Online sales surpassed half of all business for the sports nutrition giant earlier this year.
Underlining a trend of increased profitability the firm’s gross margin continued to improve, rising 400bps to 52% compared to 48% in the same period last year. The reasons behind this were a refinement of supply chain efficiencies, as well as the aforementioned e-tail performance growth. At the present time the firm’s new Blackburn facility is in progress, which will further enhance the PhD parent’s ability to create and store goods.
Stephen Moon, Chief Executive Officer of Science in Sport plc, said: “Trading over the first half of the financial year recovered well, gaining momentum as coronavirus pandemic restrictions lifted. The Group returned to over 20% revenue growth, overcoming Brexit supply chain disruptions.
“Gross margin percentage and underlying profitability continued to improve. This reflected last year’s strategic progress and continued investment in our premium brands and online capability.
“The second half has started strongly for us, and we are continuing to manage successfully input cost pressure. While uncertainties remain, we expect to exceed revenue targets for the year, and continue to be very optimistic about growth prospects over the medium and long-term.”
New product launches leant a further small increase to the bottom line, with £1.5 million in sales attributable to such debut lines, up 26% in H1.
Overseas retail trading recorded sales up by 6% to £5.2m (H1 2020: £4.9m). As a total, 40% of the business’s product sales now take place outside of the UK, up from 38% in H1 2020.