Shares in sports nutrition specialist Science in Sport (SIS:AIM) were given a 4.5% boost today to 62.7p after reporting strong growth in revenues of 152% to £24.9m for the six months ended 30 June 2019. The growth reflected the acquisition of PhD Nutrition in December 2018.
On a like-for-like basis, growth was an impressive 21% with positive contributions from both the PhD brand, where revenues were up 16% to £12.4m and the SiS brand, where revenues were up 25% to £12.5m.
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International growth was a key driver, with revenues up 55% while on-line sales were up strongly at 52%.
INTEGRATION AND NEW GROWTH INITIATIVES ON TRACK
The company reported that since the acquisition it had achieved important milestones including the re-launch of the PhD.com website and the opening of an e-commerce fulfilment facility, allowing it to exploit international distribution synergies.
The PhD brand has been soft-launched in a number of existing SiS markets while the company is test-marketing the launch of the SiS brand via PhD’s existing distribution capabilities.
Revenue growth was also boosted by the introduction of new products such as PhD’s vegan Smart Bar Plant, which is now its fourth best-selling product, and Sis’s innovative range for footballers.
The company says that it continues to trade well and in line with market expectations for the full year to 31 December 2019. According to Reuters estimates, full year revenues are expected to reach almost £50m.
Importantly, the company is expected to turn a small profit at the level of earnings before interest, taxes, depreciation and amortisation (EBITDA) for the first time.
