Applied Nutrition PLC (LSE:APN) shares jumped as much as 9% on Wednesday after the sports nutrition group delivered annual revenue ahead of expectations and forecast another strong year of growth.
The shares traded as high as 350.5p, 9.0% above Tuesday’s 321.5p close.
Revenue for the year to 31 July 2026 increased 50% to around £160 million from £107 million, beating company-compiled market expectations of £148.4 million.
Adjusted EBITDA rose 40% to approximately £43.3 million from £30.9 million, also ahead of the £42 million consensus figure.
For the year ending July 2027, Applied Nutrition expects revenue of around £205 million, representing growth of about 28% and comfortably ahead of current consensus of £186.2 million.
Adjusted EBITDA is forecast to rise a further 13% to approximately £49 million, against consensus of £47.7 million.
Peel Hunt retained its Hold recommendation and 280p price target, while noting that US expansion provides scope for revenue to outperform current forecasts.
The broker said the £160 million revenue result was around £10 million ahead of its recently upgraded forecast, with second-half sales growth of roughly 44% despite a demanding comparative.
The broker highlighted continued strength in the UK alongside international growth led by Latin America and the Middle East, despite disruption from conflict in the region.
Peel also sees potential upside from Applied Nutrition’s US business, where its new manufacturing facility has significant capacity for white-label production, while the Sour Patch licence is opening additional commercial opportunities.
The broker raised its revenue forecasts in line with management guidance but left its EBITDA and earnings estimates unchanged.
Profitability is expected to come under some pressure, with Applied Nutrition forecasting a modest reduction in margins as whey protein costs rise and whey-based products account for a greater proportion of sales following the relaunch of Critical Whey. A growing contribution from the US is also expected to weigh on group margins, with Peel Hunt estimating an adjusted EBITDA margin of 24.1% for the current year compared with 27.1% in the year just ended.
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