Applied Nutrition FY trading running ahead of expectations

(Sharecast News) - Sports nutrition company Applied Nutrition said on Monday that trading for the year ending 31 July was running ahead of expectations, with revenues now forecast to come in at roughly £148m and underlying earnings margins to be in line with consensus estimates, excluding the impact of a newly announced US acquisition.

Applied Nutrition has acquired US‑based Nutrablend Group for $16m, funded from existing cash, with the deal including a fully fitted manufacturing and warehousing facility in New York, valued at about $7m, along with production equipment, inventory and two in‑house brands - Basic Supplements and GR8 Lifestyle.

The FTSE 250-listed group stated the acquisition gives it a vertically integrated US manufacturing base with capacity to support roughly $300m of annual revenue, improving service levels for North American customers, reducing freight and import costs and freeing up UK production capacity.

While the EBITDA contribution for FY26 from the Nutrablend acquisition was not expected to be "meaningful", Applied Nutrition said the deal was expected to be earnings‑enhancing in FY27, contributing at least $30m of revenue at a high single‑digit EBITDA margin, with about 65% coming from white‑label manufacturing.

Applied Nutrition also announced a new North American flavour collaboration with Mondelēz International, allowing it to develop and manufacture AN Supps & SOUR PATCH KIDS and AN Supps & SWEDISH FISH‑branded sports nutrition products.

As of 0910 BST, Applied Nutrition shares had shot up 14.78% to 279.50p.

Reporting by Iain Gilbert at Sharecast.com

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