Science in Sport (SiS) has released its pre-close trading update for the 12 months ending 31 December, announcing a number of the year’s financial highlights for the nutrition brand.
The brand revealed ‘ahead of sector norm’ revenue growth in its profitable core business, assisted by on-plan delivery in its strategic markets: USA, Italy and Australia. Last year, SiS also launched in several new markets, including China.
The business posted group sales of £21.3 million, some 27% increase on last year’s total of £15.6 million, revealing the brand’s significantly consistent growth over the last couple of years (2017 saw around a 28% increase on 2016).
Underlying SiS sales growth also increased by 27% to £19.8 million, with second half growth accelerating to 34% following first half investment in growth initiatives.
During 2018, SiS invested heavily in its marketing campaign; becoming the official partner of Manchester United FC and striking up numerous partnership deals with the likes of cyclists Sir Chris Hoy and Mark Cavendish, and swimmer Adam Peaty. SiS also partners with British Cycling, Cycling Australia, USA Cycling and other high profile organisations.
It’s no surprise, then, that the brand experience strong online sales growth of 29% to £11.2 million, underpinned by SiS.com, which grew sales at a whopping 40% to £6.4 million following investment in a new e-commerce platform which launched in March.
Stephen Moon, Chief Executive of SiS, said: “Our consistent strategy of investment in this brand and innovation produced a strong performance in line with our expectations. We remain committed to an omni-channel strategy, however our focus on the growth drivers of the SiS.com business and developing international markets produced exceptional results.”
The rapid pace of SiS International’s growth continued throughout 2018, with an increase of 55% to £6.8 million.
Last month, SiS acquired premium performance nutrition brand, PhD Nutrition, for a sum of £32 million in a deal that sees the brand double in size, extend its product range and enhance its international presence. PhD Nutrition is reportedly one of Britain’s leading protein brands, aimed at sports enthusiasts and gym lifestyle consumers.
Moon continued: “We were delighted to have secured the PhD Nutrition business and its excellent management team and integration is on track to maximise the combined potential. Over the coming years our ambition is to build the world’s leading premium performance nutrition business.
“In the last five years the Science in Sport business has delivered CAGR of 25% and with our proven strategy and the PhD acquisition, the Board remains confident of continued strong growth in 2019 and beyond.”
The final financial results for 2018 will be posted on 20 March this year.