Science in Sport, a UK-based manufacturer of nutrition products, predicts sales will beat market expectations but predicts a loss for the full year on the back of higher ingredient prices and foreign-exchange impacts.
The London-listed business, which produces products aimed at athletes, sports enthusiasts and gym goers, said in a stock exchange announcement today (22 November) that EBITDA is now predicted to come in at a “small” loss for the 12 months to 31 December versus previous expectations for a GBP300,000 (US$387,515) profit. Sales will likely be “slightly ahead” of the market.
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It blamed the downgrade on an increase in whey prices and and a “foreign-exchange effect” related to “very strong” sales of its Smart Bars.
Science in Sport supplies supermarkets, retailers, e-commerce channels and specialist sports retailers both at home and abroad. Founded in 2005, its products include powders, bars, flapjacks, and drinks, including the recently acquired high-protein, low-sugar PhD Smart range and the SiS brand of gels, powders and energy bars. Earlier this year, the company launched into plant-based with its Plant20 range.
The company said today growth in the PhD brand has “doubled over historic rates”, while SiS continues to “grow strongly”.
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Chief executive Stephen Moon said: “Our strategy is on-track and, in the year to 31 December 2019, we expect a record year of growth from PhD and another year of consistently high growth from SiS. The integration of PhD completed as planned and we are already seeing strong trading metrics from the PhD.com website, in addition to significantly improved efficiencies in our new e-commerce fulfilment unit. Our in-house protein powder line was launched earlier this week, on time and under budget.
“The board remains confident about the outlook for 2020 and beyond as we invest in our growth priorities of e-commerce and international markets. Gross margin remains robust, costs are tightly controlled and our cash position is healthy, allowing us to be confident in our long-term growth trajectory.”
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By GlobalDataScience in Sport said it also has a “robust” innovation pipeline which will support sales going forward. It expects to issue full-year results in mid-January.
