Shares in Applied Nutrition (APN) rose 6% to 255p after the sports nutrition, health and wellness brand raised guidance for the year to July 2026 yet again.
Following a strong first half performance, the FTSE 250 firm expects FY26 results will be ahead of the previously-upgraded consensus calling for revenue of £133.5 million and adjusted EBITDA of £37.7 million.
| Share price: 255p (+6%) | PE: 22x |
| Market cap: £604m | Yield: n/a |
Cavendish hiked its FY26 revenue and adjusted EBITDA estimates by 4.3% to £140.3 million and £39.6 million respectively on the news. The broker views Applied Nutrition as a ‘high-quality, highly scalable operator in a structurally growing market’.
Positive momentum
Guided by CEO Thomas Ryder, Applied Nutrition’s diverse product range targets elite athletes, gym goers and health-conscious consumers alike.
Revenue bulked up by an impressive 57% to £74.5 million in the half to January, sending EBITDA ahead of management expectations. As a result, Ryder and his team now expect FY26 sales to weigh in at around £140 million implying year-on-year growth of around 25%.
H1 weighting
Knowsley-based Applied Nutrition entered the peak January period, typically a surge month for gyms, with retail orders and customer stock levels ‘significantly above expectations’.
This reflected the success of its channel diversification across UK high street health retailers, grocers and discounters.
‘Together with accelerated demand for a number of H1 FY26 product launches, this is expected to result in a more H1‑weighted revenue profile than in prior years,’ explained the company.
When it first came to market in October 2024, we thought Applied Nutrition might be a bit ‘faddy’, but the company is clearly benefiting from the fight against obesity and the growing consumer trend towards healthy living.
Having boosted brand awareness through the IPO, and given its positive trading momentum, the stock is worth paying attention to going forward.
As Cavendish argues: ‘While some investors may point to the valuation premium that Applied Nutrition enjoys relative to peers, we believe the superior margin profile, higher-quality earnings and interesting margin-accretive opportunities (licensed range with Morrisons) justify this premium rating.’
Read the press release here: https://www.appliednutritionplc.com/regulatory-news/
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