Science in Sport plc (AIM: SIS), the premium performance nutrition company serving elite athletes, sports enthusiasts and the gym lifestyle community, is pleased to announce its unaudited results for the 6 months ended 30 June 2019.
- Group revenue increased 150% to £24.87 million (H1 2018: £9.93 million), reflecting the first full six-month contribution from PhD Nutrition Ltd ("PhD"), following its acquisition on 6 December 2018, and strong organic growth from the SiS brand
- 16% like-for-like increase in PhD revenue to £12.40m (H1 2018 pro forma: £10.68m*), representing record growth for the PhD brand
- 26% increase in SiS revenue to £12.47 million (H1 2018: £9.93 million) up from 20% growth in H1 2018
- 56% growth in total revenue from international markets (H1 2018: 49%), which now accounts for 33% of total revenue across both brands
- PhD performing in line with expectations; the integration of the PhD and SiS brands is progressing well; both brands are benefiting from shared distribution channels and the opening of an e-commerce fulfilment facility at our Nelson site
- Continued focus on e-commerce sales with SiS.com sales up 52% in the half year and PhD.com successfully relaunched in April 2019
- New product development remains a key growth driver for both brands; new products delivered 32% of total Group sales growth in the first half with successful product launches including PhD's Smart Bar Plant and SiS's innovative Football range
- Substantial increase in Group gross profit to £11.15 million (H1 2018: £5.86 million) including £4.13 million from PhD
- Group gross margin on a like-for-like basis of 44.8% (H1 2018: 45.9%). Gross margin expected to be in line with year end expectations
- Underlying operating loss** of £0.60 million (H1 2018: loss of £1.70 million) in line with expectations and reflecting the EBITDA contribution from PhD in the first six months of 2019
- Cash and cash equivalents of £5.03 million (FY 2018: £8.00 million H1 2018: £10.66 million)
- Appointment of James Simpson, a highly experienced consumer sector and e-commerce executive, as Chief Financial Officer with a start date of 26 September 2019
* for meaningful comparison, pro forma numbers have been used for PhD H1 2018 when the business was not owned by the Group
** excludes depreciation, amortisation, and share based payments, and transaction costs related to the acquisition of PhD
Stephen Moon, Science in Sport's CEO, said:
"The integration of the PhD and SiS brands remains firmly on track and we are particularly excited by the potential of the PhD.com e-commerce business. Important milestones achieved in the first half include relaunching the PhD.com website, opening an e-commerce fulfilment facility and exploiting international distribution synergies, as well as the integration of teams across both brands.
"Introduction of the new protein powder line at our Nelson site remains on track to enable in-house PhD powder manufacture with a go-live date of November 2019.
"We remain confident of delivering on full year expectations, and of the future growth of both our brands. Investment in performance innovation, brand awareness, e-commerce, International and effective manufacturing will underpin expected growth in 2020 and beyond."