Science in Sport (SiS), the ‘premium performance nutrition company’, has announced its audited final results for the year ended 31 December 2019.
Highlights noted by SiS include:
- A 23% increase in group revenue to £50.6m, reflecting the first full year contribution of PhD (acquired by SiS in December 2018) and strong organic growth by both PhD and SiS.
- PhD delivered revenue growth of 23%, and the SiS brand delivered 24% revenue growth – contributing to a six-year 25% revenue compound annual growth rate (CAGR).
- Integration of PhD completed on time and in full including launch of PhD.com, new e-commerce fulfilment operation and installation of protein powder line at the Nelson, Lancashire, UK, factory.
- Online revenue, a key strategic focus for the group, grew strongly – up 36% to £16.4m.
- Strategic markets of USA and Football grew 92% and 94% respectively, in line with expectations, to £3.9m in total.
- International retail revenue was up 41% to £12.3m, with strong growth in existing markets in Europe and Asia, plus new territories including PhD launching in Saudi Arabia and SiS expanding into Latin America.
- Innovation-driven new products delivered 25% of total group revenue growth and included PhD’s vegan Smart Bar Plant, SiS’s Protein20 bars and the SiS Football range.
- Group gross margin of 44% impacted by one-off items from inventory and global whey commodity pricing.
- Underlying operating loss of £0.3m ‘in line with growth strategy and market expectations, reflecting continued investment in brand awareness, e-commerce and international expansion.’
- Cash and cash equivalents of £5.4m in line with market expectations.
SiS adds that it continues to perform in-line with expectations, with Covid-19 preparations having been in place for some weeks.
Stephen Moon, Science in Sport’s CEO, said “2019 was a transformational year for Science in Sport as we integrated the PhD business as planned and continued our strategic growth focus on e‐commerce and international, positioning the group for the next stage of its growth.
“Our preparations for Covid-19 disruption have been underway for several weeks; and measures include buying sensitive raw materials, securing the supply chain operation, and remote working for commercial and operations staff.
“Costs are being managed very tightly and contingency plans are in place. We are well prepared to protect the company and its workforce should the impact from Covid-19 become extended.”
