Applied Nutrition PLC (LSE:APN), the sports nutrition and wellness brand, saw its shares fall almost 12% to 195p on Monday despite reporting a 57% jump in first-half revenue to £74.5 million.
Analysts said the Middle East conflict is a potential headwind this year given it is the group's second-largest geography by revenue.
Profit before tax rose 77% to £20.9 million in the six months to January 31, while underlying profit (EBITDA) climbed 56% to £21.5 million, with all key metrics coming in ahead of management expectations.
The company ended the period with net cash of £26.4 million, up from £10.9 million a year earlier, but free cash flow slipped to £7.9 million from £8.9 million.
The company flagged that full-year revenue will be more heavily weighted towards the first half than in previous years, suggesting a softer second half lies ahead as disruption to shipping routes in the Middle East from the war in Iran is expected to weigh on volumes into that region in the second half.
However, management left its full-year revenue guidance unchanged at approximately £140 million.
Chief executive Thomas Ryder said the period had "further highlighted both the breadth of opportunity before us and our proven ability to realise it," pointing to new customer wins, expanded shelf space and continued international expansion.
The company is building a new global distribution facility and head office, and extending its factory to support revenue capacity of up to £300 million.
Broker Cavendish said: "Clearly, the Middle East conflict may weigh on short-term sentiment and is a potential headwind for FY26E given it is APN’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."