Ultimate Products (ULTP) H2 2024 earnings summary

Executive summary

• Revenue declined 6.5% year-over-year to £155.5m, with adjusted EBITDA down 11% to £18.0m and adjusted EPS down 20% to 12.3p, reflecting challenging consumer demand and tough comparatives from prior year air fryer sales.

• Gross margin remained stable at 26.0% despite rising shipping costs, and net bank debt/adjusted EBITDA improved to 0.6x.

• Dividend maintained at 7.38p per share, reflecting confidence in future prospects.

• Board reshaped with new Chair, CEO, and CCO, and a new Capital Allocation Framework was approved.

Financial highlights

• Revenue: £155.5m, down 6.5% year-over-year.

• Adjusted EBITDA: £18.0m, down 11% year-over-year.

• Adjusted EPS: 12.3p, down 20% year-over-year; statutory EPS: 12.2p, down 17%.

• Gross margin: 26.0% (FY23: 25.7%).

• Net bank debt/adjusted EBITDA: 0.6x (FY23: 0.7x).

• Operating cash conversion: 103%.

Outlook and guidance

• Cautious optimism for FY25, with international growth momentum, especially in Europe, offsetting weak UK consumer sentiment.

• Board maintains expectations for the current financial year, supported by easing freight rate pressures and strong brand demand in Europe.