Science in Sport has announced its unaudited results for the six months ended 30 June 2019. The company notes that group revenue increased 150% to £24.87 million (H1 2018: £9.93 million). This reflects the first full six-month contribution from PhD Nutrition, following its acquisition in 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). SiS notes that this represents record growth for the PhD brand.
- 26% increase in SiS revenue to £12.47 million (H1 2018: £9.93 million). This follows on from 20% growth recorded 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.
SiS adds that PhD is 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 SiS’s Nelson site [in North West England].’
There has been a continued focus on e-commerce sales, with SiS.com sales up 52% in the half year and PhD.com relaunched in April 2019.
New product development also 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 reported to be PhD’s Smart Bar Plant and SiS’s Football range
- 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%).
The company’s underlying operating loss of £0.60 million excludes depreciation, amortisation, and share based payments, and transaction costs related to the acquisition of PhD. This compares to a H1 2018 loss of £1.70 million. SiS adds that this is in line with expectations and reflects 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)
- SiS also recently confirmed the appointment of James Simpson, an experienced consumer sector and e-commerce executive, as Chief Financial Officer with a start date of 26 September 2019.
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.”
