Food and Beverage Business
Finance

Applied Nutrition shares hit amid Middle East caution

by FAB Team
Applied Nutrition shares hit amid Middle East caution Applied Nutrition Food and Beverage Business

Applied Nutrition saw its share price decline in early trading today (23 March) after warning that sales in the Middle East are likely to face pressure in the coming months.

Despite reporting strong first-half performance and reaffirming its full-year outlook, the UK-based sports nutrition group experienced a drop of more than 4% in its share price at the time of writing.

Chief executive Thomas Ryder said the business is closely monitoring ongoing disruption in the Middle East, particularly around shipping routes and regional purchasing activity.

“We continue to monitor the evolving situation in the Middle East and, whilst we are well diversified globally, we are cognisant of the current disruption to shipping routes and purchasing activities within the region as well as the uncertainty around how long these conditions may persist,” he said.

“Importantly, we have managed similar disruption in the past, supported by the agility of our operations. In this instance, we are working closely with customers to adapt our routes into the region and logistics arrangements to safeguard continued supply to those customers.

“Although we expect some reduction in volumes into the region during the second half, at this stage there is no change to FY26 guidance.”

Applied Nutrition, which recently raised its revenue expectations, is forecasting full-year sales of approximately £140m ($187.8m), compared with £107.1m the previous year.

For the six months ending January, revenue increased by 56.5% to £74.5m, reflecting continued demand across its core markets.

Operating profit rose significantly to £20.7m, up from £11.5m a year earlier, while profit attributable to shareholders climbed to £15.4m from £8.9m.

“This six-month period has further highlighted both the breadth of opportunity before us and our proven ability to realise it. The performance and momentum across the business reflects a consumer environment that continues to shift decisively towards health, fitness and wellbeing,” Ryder added.

The company reports its performance across three regions: the UK, Europe and International markets. UK revenue increased 45.8% to £31.5m, while European sales rose 37.5% to £8.8m. International markets delivered the strongest growth, with revenue climbing 74.5% to £34.2m.

Applied Nutrition noted that international performance was driven by strong demand in the Middle East and Latin America.

The business, which listed in 2024, markets four core product ranges — Applied Nutrition, ABE, BodyFuel and Endurance — with more than 100 products distributed across over 85 countries.

Shares in Applied Nutrition, which have risen more than 70% over the past year, were down 4.52% at 211p as of 12:40 GMT.

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