Science in Sport FY underlying earnings more than double

(Sharecast News) - Sports nutrition business Science in Sport said on Monday that FY underlying earnings had more than doubled, stating it was "proud" of its performance but noted it had been "challenging" given the level of turnaround required. Science in Sport said FY24 underlying earnings had surged 112.7% to £4.2m, with EBITDA margins improving by five basis points to 8.2% and losses per share improving from 6.6p in FY23 to 2.3p in FY24. Trading contributions increased 7.3% to £13.8m

However, revenues were down 17.2% at £51.9m and gross profits fell 12.5% to £23.5m but noted that it was "confident" of the resetting of its operating model and stepping away from uncommercial revenue streams to provide a platform for accretive growth moving forward.

Looking ahead, Science in Sport said it was taking an "ambitious yet balanced view" on prospects for FY25, where trading performance has "started well" with the improvements made throughout FY24 continuing to annualise.

"The strategic focus areas are driving profitable revenue growth through distribution agreements both domestically and internationally; controlled growth over the medium term supported by effective marketing with a clear strong commercial execution; and, continued margin improvements from ongoing cost challenge resulting in cash generation and deleveraging," said Science in Sport.

"Whilst these improvements have started to be realised maximising the group's full potential is likely to require further capital investment in distribution and product range to scale quickly as significant growth of marginally accretive revenue requires a longer-term outlook."

As of 1005 BST, Science in Sport shares were up 0.77% at 1,080.25p.

Reporting by Iain Gilbert at Sharecast.com