01/11/2022, 18:29 Science in Sport PLC | Half Year Trading Update | InvestEgate

Science in Sport PLC

Half Year Trading Update

RNS Number : 1381F
Science in Sport PLC
14 July 2021
 

14 July 2021
AIM: SIS
 
This announcement contains inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European
Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's
obligations under Article 17 of MAR.
 
 
Science in Sport plc
("Science in Sport" or "the Company")
 
Half Year Trading Update
 
Returning to 20%+ Revenue Growth
 
Science in Sport, the premium performance nutrition company serving elite athletes,
sports enthusiasts and the active lifestyle community, is pleased to announce a
trading update for the first six months of its current financial year ending 31
December 2021.
 
Results Overview
After an encouraging start in January and February, sales continued to recover well,
gaining momentum through the second quarter, with record monthly sales in June.
This period of profitable growth, together with positive prospects for the second half,
including new product launches, places the Company in a strong position to meet
market expectations for the full year.
 
Revenue for the first six months increased by 24% to c. £29.3m, over the same period
last year (H1 2020: £23.6m). Both brands, PhD Nutrition, an active lifestyle nutrition
brand, and SIS, a leading endurance nutrition brand among elite athletes and
professional sports teams, contributed strong double-digit growth, generating sales
of £13.4m and £15.9m respectively (H1 2020: PhD, £11.7m, and SIS, £11.9m). New
product launches accounted for 26% of revenue growth in H1.
 
Underlying EBITDA1 profit increased to £0.6m, continuing the strong upward trend
(H1 2020: loss of £0.2m), and after an estimated one-off £0.6m negative impact from
Brexit. Gross margin increased to 52%   (H1 2020: 48%), driven by supply chain
efficiencies and continued sales shift to online.  
 
The Company's capital investment programme was accelerated, with £2.7m
expended in the first half, compared to £0.9m in the same period last year. This
investment supported the launch of a new customer data platform, which will drive
ongoing online sales growth, and the first phase of investment at the new supply
Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202107140700021381F 1/3
01/11/2022, 18:29 Science in Sport PLC | Half Year Trading Update | InvestEgate

chain facility in Blackburn, which is currently scheduled to open in late Q1 2022.

Significant further investment is planned in H2.
 
Reflecting the accelerated investment, the Group's cash position at 30 June 2021 was
£8.2m (31 December 2020: £10.5m), slightly better than expected.  The Company has
an £8.0m debt facility, which remains unused.
 
1 before interest, tax, depreciation, amortisation, share based payments and foreign exchange variance on
intercompany balances
 

 
Online sales
Online sales rose strongly, up by 44% to £15.7m (H1 2020: £10.9m). Online sales via
the Group's own digital platforms were up by 35% and via third-party marketplace
sites up by 53%.
 
In the important market of the US, sales increased by 60% to £2.4m (H1 2020:
£1.5m), and PhD and SiS websites were launched in Japan and South Korea,
supporting international expansion plans. Further site launches in the Middle East
and India are scheduled for the second half.
 
Online sales accounted for 54% of total sales in the first half (H1 2020: 46%), and
remain a key focus of investment as part of the strategic growth plan.
 
Retail sales
Despite being adversely impacted by  pandemic restrictions, UK retail sales rose by
8% to £8.4m (H1 2020: £7.7m). International retail sales at £5.2m were 6% ahead (H1
2020: £4.9m).  These results were after exiting over 60 sub-scale accounts in late
2020, as part of a refocusing on key accounts in scale markets.
 
Date of publication of interim results
The Board expects to publish interim results in mid September 2021 when it will
provide a further update on current trading.
 
Stephen Moon, CEO of Science in Sport plc, said:
 
"The Group has regained its growth momentum after the unprecedented global
disruption of the pandemic in 2020, returning to 20%+ growth rates. This very
encouraging performance reflects the progress achieved in 2020 and the strength of
our premium brands, and will help to drive strong underlying EBITDA growth.
 
"Growth is across all key markets, especially online, which is a key strategic area for
us. Online sales increased by 44%, and now account for 54% of total sales, up from
46% a year ago, underpinned by our increased investment in online technology. Retail
sales both in the UK and internationally moved past last year's comparatives and
have further to go.
 
"Prospects for further progress in the second half look strong, and our long-term
growth strategy remains unchanged."
 
Science in Sport plc T: 020 7400 3700
Stephen Moon, CEO

James Simpson, CFO

Liberum (Nominated adviser and broker) T: 020 3100 2000

Richard Lindley, James Greenwood, Will Hall

KTZ Communications T: 020 3178 6378

Katie Tzouliadis, Dan Mahoney

 
About Science in Sport plc
www.sisplc.com
Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202107140700021381F 2/3
01/11/2022, 18:29 Science in Sport PLC | Half Year Trading Update | InvestEgate

Headquartered in London, Science in Sport plc is a leading sports nutrition business

that develops, manufactures and markets innovative nutrition products for
professional athletes, sports and fitness enthusiasts and the active lifestyle
community. The Company has two highly regarded brands, PhD Nutrition, a premium
active-nutrition brand targeting the active lifestyle community, and SiS, a leading
endurance nutrition brand among elite athletes and professional sports teams.
 
The two brands are sold internationally through the Company's phd.com and
scienceinsport.com digital platforms, third-party online sites, including Amazon and
Tmall, and an extensive retail distribution in the UK and internationally, including
major supermarkets, high street chains and specialist sports retailers. This
omnichannel footprint enables the Company to address the full breadth of the sports
nutrition market, forecast to be £13 billion worldwide by 2023.
 
PhD is one of the  UK's  leading active nutrition brands with a reputation for high
quality and product innovation. The brand has grown rapidly, based on its core
protein powders, since its launch in 2005. The range now comprises powders, bars
and supplements, including the high protein, low sugar range, PhD Smart. PhD brand
ambassadors include leading fitness influencers Ross Edgley and Obi Vincent. The
PhD brand is an official partner to the Tough Mudder Challenge and Race Series.
 
SiS, founded in 1992, has a core range comprising gels, powders and bars focused on
energy, hydration and recovery. SiS is an official sports nutrition supplier to over 250
professional teams, organisations and national teams around the world, including
INEOS Grenadiers Cycling Team. SiS supplies more than 150 professional football
clubs in the  UK,  Europe  and  the USA and is Performance Research Partner to the
English Football Association.
 
For further information, please visit phd.com and scienceinsport.com
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the
Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions
relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com
or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with
the information contained in this communication, and to share such analysis on an anonymised basis with others as
part of our commercial services. For further information about how RNS and the London Stock Exchange use the
personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTFLFIDDTIVLIL

Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202107140700021381F 3/3