Vape supplier Supreme’s CEO has said he is “confident” in the face of the government’s new 22p per millilitre duty on vaping liquids, despite an anticipated blow to profit margins.
Sandy Chadha told investors that Supreme’s 88Vape brand had “always been a value proposition” and for that reason would “continue to resonate” with both existing and new consumers as the new pricing regime takes effect from October.
Supreme grew 17% last year thanks to its diverse acquisition strategy, with brands such as Typhoo – rescued from administration in late 2024 – and Slimfast performing well. Its vaping division grew 15%, despite pressure from a ban in disposable vapes.
The company has now said it expects growth in line with expectations of £302m for 2027, up 11.8% from 2026, without any further acquisitions.
However, its EBITDA is expected to remain steady at £39.6m next year, representing a 1.9 percentage point drop in EBITDA margin from 15% to 13.1%. Supreme took £40.6m in EBITDA in its year to 31 March 2026.
The business said it was “well positioned to deliver organic growth and resilience in the vaping market” and was “fully prepared” for the upcoming vape duty.
“We have begun trading in FY27 with good momentum, and I am encouraged by the group’s performance across our divisions,” said Chadha. “Having grown the business substantially over the past few years, driven by a number of high-profile acquisitions and organic investment, we are now firmly focused on building on the group’s strong platform for growth.
“Having created an established manufacturing and compliance capability, our scale, brand positioning and value-led offering leave us well placed to successfully navigate the evolving vape marketplace.”
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