One of the attractions of the FMCG industry is its predictability. Indeed even during the toughest of times, hard up consumers still buy affordable cleaning sprays, protein shakes, tea, soft drinks and reusable vapes. That consistent, non-perishable, value-led demand is exactly where Supreme   resides – and was on display again in today’s positive March FY26 results and in line outlook.

Here revenues jumped 16.9% to a record £270.2m – split 5.3% organic and 11.6% M&A – reflecting its earnings enhancing acquisitions of SlimFast UK (standout performer in 1st 5 months), 1001, Clearly Drinks Ltd and Typhoo Tea, augmented by another strong year for Vaping (+15% LFL). Sure EPS fell 13% to 18.9p, yet this was due to higher non-cash items (eg Depreciation & amortisation) and the industry’s transition from disposable to pod-based vapes, which carry structurally lower gross margins. Net cash closed March at a healthy £7.5m, and EBITDA of £40.6m was bang in line with expectations too following a 10% upgrade in Apr’26.

The important point for investors is that Supreme is building a diversified FMCG platform across Vaping, Drinks & Wellness and Electricals & Household (nb non vapes contributing 45% of FY26 sales & 40% gross profit) - underpinned by modernised manufacturing sites, innovative product development and a 55,000-retail-outlet network. Plus, the £22.3m spent on purchasing SlimFast and 1001 is expected to generate £6.5m of incremental EBITDA. While the £6.0m of capex to upgrade the “Hive” wellness and “Plant” tea facilities should similarly drive future profit margins and returns.

This is not just a UK growth story either. Elsewhere the Board is also eyeing up opportunities overseas (10% of group) with distribution already established in Hong Kong, and license agreements recently signed in the Middle East and China.

CEO Sandy Chadha commenting: Supreme delivered a “record-breaking performance” with a portfolio that has “doubled over the past couple of years” supported by brand-led acquisitions and organic product expansion. Adding too that manufacturing investment is key to safeguarding margins and keeping product development “at the heart” of the business.

Wrt the numbers, consensus FY27 forecasts are for £291.0m (+7.7%) of revenue, £41.0m EBITDA and 19.8p EPS. Thus putting the stock (158p) on attractive 8.0x PE and 4.6x EV/EBITDA multiples whilst equally paying a 3.4% dividend yield.

Yes, FY27 brings more uncertainty with the new Vaping Products Duty being introduced in Oct’26. Nonetheless, Supreme is a cash-generative, entrepreneurial led FMCG compounder — using scale, brands, M&A and production muscle to keep the engine firing whatever the economic weather.

Disclosure: Supreme is a Vox Markets client.