Applied Nutrition has raised its annual sales and profit forecasts for the third time this year, putting the sports supplement maker closer to a £1 billion stock market valuation.
Shares in the company initially jumped more than 9% after it reported strong demand for protein powders, sports supplements and energy drinks. The gains later faded, with the stock trading 0.3% lower at 321p around lunchtime as investors focused on expectations of weaker profit margins.
The company now expects annual earnings before interest, taxation, depreciation and amortisation to reach about £43.3 million. That is above the £42 million market consensus and 40% higher than the £30.9 million recorded last year.
Revenue is expected to rise by about 50% to £160 million, also ahead of previous expectations.
The latest upgrade marks the third increase to the company’s revenue guidance this year. Applied Nutrition said demand had remained strong despite economic pressures linked to the war in Iran, which has affected consumer spending and disrupted shipping in parts of the Middle East.
The company’s shares have gained about 90% over the past year, lifting its market value above £800 million and bringing the group closer to the £1 billion milestone.
From Kirkby business to listed company
Applied Nutrition was founded in 2014 by Tom Ryder, a fitness enthusiast from Liverpool who trained as a scaffolder. He began selling sports supplements as a side business from a small shop in Kirkby when he was 18.
The company initially sold a single product, Critical Mass, before expanding into a much broader range of nutrition and energy products.
The business has attracted several prominent investors, including Coleen Rooney, Peter Cowgill, the former chief executive of JD Sports, and Mohsin Issa, co-founder of EG Group.
Applied Nutrition became one of the London market’s largest flotations of 2024 and exceeded expectations during its first year as a listed company.
US growth puts pressure on margins
Analysts at Berenberg described the company’s momentum as impressive but warned that margins could fall in fiscal 2027.
Applied Nutrition said higher whey protein costs and a larger share of sales from whey-based products were contributing to the pressure. Increased revenue from the US market is also expected to affect margins.
The company recently agreed to acquire Buffalo-based nutrition manufacturer Nutrablend Group for £12 million as part of its US expansion.
It has also signed a licensing agreement with Mondelez International to develop sports nutrition products using the Sour Patch Kids and Swedish Fish brands. The products are expected to be sold through 2,200 Walmart stores.
Applied Nutrition ended fiscal 2026 with net cash of £15.9 million, compared with £18.5 million a year earlier, following the Nutrablend acquisition.
For fiscal 2027, the company expects revenue of about £205 million and Ebitda of approximately £49 million, reflecting continued growth as it expands its presence in international markets.
