Science in Sport: Revenue down by a quarter but restructuring will ‘return firm to growth’

Nutrition specialist Science in Sport has said it is confident that the business will “return to growth” after a sharp drop in revenue during the first half of the year.

The London-listed company, which sells a range of protein powders, electrolyte products and nutritional supplements, said that revenue fell by 25.4 per cent to £25.7m in the six months ended 30 June.

Gross profit fell by 20.8 per cent to £11.5m. 

The board said the drop was due to a restructuring toward a royalty based model in certain export regions.

It has also made “significant operational cost savings” in the half, as well as “progress in implementing operational efficiencies”, the company said.

“This is anticipated to generate improved contribution to cashflow and earnings throughout 2024,” it added. The company estimated savings of £6m in 2024.

During the period, Science in Sport also had a shake-up of its leadership team, with several senior roles exiting the business. 

Its share price has risen by over 113 per cent in the year to date and over 64 per cent in the last six months, in a sign of investor’s confidence in the restructuring plan.

Executive chairman Dan Wright said: “The Board is pleased to report that the restructuring started late in 2023 began to deliver much stronger operating margins… as the Group undergoes a necessary reset.

We now have a broader team in place structured for success through extensive experience in strategic development and commercial execution across all areas of the business. 

The revenue and profitability (of the first half of the year) should be a baseline from which we anticipate controlled and sustained revenue and profit growth in the medium term. 

This will be underpinned by our strong brands continuing to perform well in their respective market places, the launch of new product lines, the annualised impact of the rebasing of the operating cost model, as well as efficiencies in the operating model and availability of key inventory items following targeted investment from our recent significantly oversubscribed equity raise.”