The sports supplement maker Applied Nutrition has raised its annual sales and profit guidance for the third time this year, bringing the company founded by a former Liverpool scaffolder within touching distance of a £1 billion stock market valuation.
Shares in the group, which cited “sustained demand” across its range of protein powders, sports supplements and energy drinks, initially rose more than 9 per cent when markets opened on Wednesday. Those gains later fell away, with the stock down 0.3 per cent at 321p by lunchtime amid concerns about an anticipated drop in margins.
In its latest trading update, Applied Nutrition said it now expects annual earnings before interest, taxation, depreciation and amortisation (Ebitda) of approximately £43.3 million, ahead of the £42 million consensus forecast and up 40 per cent on the £30.9 million reported last year. Revenue is also expected to come in ahead of expectations, up by 50 per cent to £160 million.
Wednesday’s announcement is the third upgrade to revenue guidance this year, delivered despite headwinds from the Iran war, which has put pressure on consumer spending and disrupted shipping in parts of the Middle East.
The shares have risen by about 90 per cent over the past 12 months, giving the group a market capitalisation of more than £800 million and bringing the business within reach of the £1 billion milestone.
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