Shares in Applied Nutrition (LON:APN) flashed green after the sports nutrition brand delivered yet another upgrade to FY26 guidance.
Drawing confidence from the strong momentum behind the business, the protein powders-to-supplements maker also boosted its FY27 outlook. Investors looked past the ‘significantly’ higher whey protein costs which will crimp FY27 EBITDA margins.
Another round of upgrades
For the year to July 2026, the functional nutrition products firm expects to report a 40% jump in adjusted EBITDA to £43.3 million. That is ahead of the previously-upgraded consensus estimate of £42 million.
FY26 revenue grew 50% to £160 million. That topped the £148.4 million the market was calling for thanks to broad-based growth across geographic regions and retail channels.
| Year to July | FY26E | FY27E | FY28E |
| Revenue (£m) | 160.3 | 205.1 | 226.5 |
| EBITDA (£m) | 43.3 | 49.1 | 54.3 |
| EPS (p) | 12.3 | 13.7 | 15.1 |
Source: Canaccord Genuity
For FY27, Applied Nutrition now expects adjusted EBITDA to grow 13% year-on-year to about £49 million. That is comfortably ahead of the £47.7 million consensus estimate. Sales are expected to swell to a better-than-expected £205 million.
Whey cost warning
The only sour note in an otherwise tasty trading update was the warning FY27 EBITDA margin is expected to ‘decrease slightly’ from FY26 levels. ‘This reflects an increased revenue contribution from the US, together with significantly higher whey protein costs and a greater proportion of sales from whey-based products,’ explained Applied Nutrition.
Following the update, Cavendish reiterated its ‘buy’ recommendation on Applied Nutrition. ‘While the lower forecast margin reflects elevated whey prices and a growing mix contribution from whey-based products,’ said the broker, ‘the model remains highly cash generative. Strong trading and delivery ahead of expectations prompts us to lift our target price to 355p from 320p.’
Deutsche Numis upgraded its target price from 335p to 350p. ‘We continue to believe that Applied Nutrition is structurally aligned with rising demand for sports nutrition and should be able to build on what we regard as conservative expectations for FY27,’ enthused the broker.
We are bullish about the global growth potential of Applied Nutrition. Led by CEO Thomas Ryder, the company continues to benefit from rising public interest in health, wellness and fitness products.
A net cash balance sheet should support growth. And for now at least, the firm’s robust margins are holding up despite elevated whey costs.
The company is growing like topsy everywhere from the UK and Asia to Latin America and the Middle East. And the US continues to present an exciting opportunity following the acquisition of Nutrablend.
Canaccord Genuity said the Nutrablend acquisition provides ‘a strategic operational platform in North America, enhancing Applied Nutrition’s ability to capitalise on the long-term opportunity in the world’s largest sports nutrition market.’
