Shares in Applied Nutrition (APN) plunged 11% to 196.4p after the company warned of ‘some reduction’ in Middle East volumes due to the Iran conflict.
The alert overshadowed forecast-beating results from the company, whose shareholders include brand ambassador Coleen Rooney.
The sports nutrition, health and wellness brand also reiterated its FY26 performance will be H1-weighted. This reflects higher retailer stock levels ahead of the peak January period and accelerated demand for H1 product launches.
‘Cognisant’ of current challenges
Founded by CEO Thomas Ryder, Applied Nutrition’s products are targeted at elite athletes, gym goers and health-conscious consumers.
The protein powders-to-supplements producer said it is ‘cognisant’ of the current disruption to shipping routes and purchasing activities within the Middle East.
However, Applied Nutrition felt confident enough to maintain FY26 guidance. This points to a rough 30% year-on-year jump in sales to around £140 million.
Sales are bulking up
H1 results showed a forecast-beating 53.7% jump in adjusted pre-tax profits to £20.9 million. Revenue bulked up 56.5% to £74.5 million. New product development and investment in marketing helped to drive wins with existing and new retail customers.
Distribution was expanded further across Europe, Latin America and Asia and Applied Nutrition closed the period with £26.4 million net cash in the coffers.
Moving faster, thinking bigger
Ryder commented: ‘Since our IPO, we have seen an uplift in our profile, awareness, trust and credibility – exactly as we had envisaged, but even more impactful than we could have anticipated.
‘This has enabled us to move faster and think bigger, with an innovation engine that is stronger than ever, allowing us to bring new products to market at pace, deepen customer relationships and adapt quickly to evolving consumer needs as we continue to build the business for the long term.’
Cavendish reiterated its ‘buy’ rating and 285p target price for Applied Nutrition. The broker said:
‘Clearly the Middle East conflict may weigh on short-term sentiment and is a potential headwind for FY26 given it is Applied Nutrition’s second largest geography by revenue.
‘But the extent of the impact will obviously depend on the scale and length of the conflict.
‘We believe that management are actively finding solutions to get product on shelves, which should position them nicely once resolved.’
It remains to be seen whether the Middle East conflict will halt Applied Nutrition’s positive forecast momentum.
But the company is clearly benefiting from the growing consumer trend towards health, fitness and wellbeing, having raised FY26 guidance twice.
While the FTSE 250 firm faces near-term headwinds, Sharesify remains positive on its long-run potential.
Applied Nutrition remains a small player in a global sports nutrition, health and wellness market projected to grow to £279 billion by the end of 2028 according to Euromonitor. That means its growth opportunity is nothing short of vast.
Read the press release here: https://www.appliednutritionplc.com/regulatory-news/
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