Applied Nutrition has hiked its earnings outlook thanks to a 50% surge in sales and forecast more growth over the year ahead despite pressure from rising whey prices
The health and wellness brand – which is backed by TV personality Coleen Rooney – said it now expects annual underlying earnings to jump by 40% to around £43.3 million after sales soared to £160 million in the year to July 31, up from £107 million the previous year
This compares with previous expectations for earnings of £42 million and revenues of £148.4 million for the full year
It said that since June 1, trading had remained strong with “sustained demand across the group’s markets and channels”
Applied Nutrition added it is set for further solid growth in the year to July next year, upping its guidance to £47.7 million in underlying earnings, which would mark a 13% rise, and sales of about £205 million
But it cautioned that profitability would be knocked next year as it faces rising costs of whey, which now is used in a greater proportion of products
The Liverpool-based group recently relaunched its Critical Whey range to tap into rising demand for whey-based products
It said underlying earnings margins would fall slightly in 2026-27
Analyst Wayne Brown at Panmure Liberum said: “We upgrade forecasts again, despite the challenges thrown at the industry from higher whey prices, Iran war and a backdrop of low consumer confidence in the UK
“That said, the long-term trends of health and <a href="https://healthylife7.com/fitness-for-all-taking-strides-ahead/” title=”'Fitness for all' taking strides ahead”>fitness are clearly global and becoming more entrenched and Applied Nutrition dynamic model is clearly taking significant shelf space as it expands its reach.”
Applied Nutrition’s earnings upgrade comes in spite of the firm cautioning in March that sales volumes would be impacted across the Middle East because of the Iran war
The group is set to report full-year figures on November 16
