APN Resources (LON:APN) executives said the company delivered strong first-half FY2026 growth and entered the second half with “great momentum,” while maintaining full-year revenue guidance of £140 million despite shipping disruption tied to the evolving Middle East situation.
Founder and CEO Thomas Ryder was joined on the call by COO Steven Granite and CFO Joe Pollard to discuss operating performance, investment plans, and product development. Management highlighted broad-based channel growth, expanded international reach, and continued emphasis on new product development (NPD) as key drivers of the period.
H1 performance and upgraded FY2026 expectations
Gross profit and adjusted EBITDA increased by 56% apiece, according to management. Adjusted EBITDA was £21.5 million, with an adjusted EBITDA margin of 28.9%, which Pollard said was in line with performance since the company’s IPO. Earnings per share were 6.2p on both a basic and diluted basis. Net cash at the end of the period was £26.4 million.
Pollard also said the company expects a more first-half-weighted revenue profile than in prior years, citing a very strong January health, fitness, and well-being trading period that accelerated demand for several H1 product launches.
Geographic growth and product mix dynamics
Management described growth across all geographies. In the UK, Pollard said performance was supported by additional listings, deeper distribution, and expanded product ranges. Europe saw “significant growth” across key territories, particularly Spain and Germany. In the rest of world segment, the company continued momentum from the second half of FY2025, driven by expanded listings among key distributors.
Pollard pointed to Latin America as a particular area of strength, saying sales in the region rose 110% compared to the first half of FY2025. Ryder and Granite later cited expansion in Latin America and pointed to channel opportunities such as pharmacy distribution in South America.
On product economics, Pollard said gross margin was in line with the same period a year earlier despite higher whey prices, which he said was muted by the group’s diverse product range and active management of exposure to whey. He added that lower shipping prices from China provided a small tailwind through carriage, logistics, and import duty costs, while staff costs were a small headwind after salary increases implemented to remain competitive without a corresponding increase in selling prices.
Pollard said the product mix remained well-balanced and that outside of whey protein, the company did not see significant raw material volatility. He also noted strong growth in non-whey protein products, with sales up 83% year over year, and said the intra-workout category saw significant growth as products such as creatine gain recognition for broader benefits beyond traditional sports nutrition audiences.
Investment plans: distribution facility, production expansion, and revised CapEx priorities
Granite said construction has commenced on a new global distribution facility and head office, which is intended to consolidate pallets currently stored off-site, improve efficiency, and reduce order lead times. While the site is leased, Granite said the company plans to invest £3.5 million to £4 million in fit-out and machinery, with an expected operational start in February 2027.
Granite also said construction has begun on phase three of the company’s production facility, expected to be live in late summer 2026 and to increase sales capacity to around £300 million. He described that investment as “circa £2 million.” Management added that the company decided not to invest in an effervescent tablet line that had been earmarked for an additional £2.5 million.
Granite said the revised plan results in total CapEx of approximately £5.5 million to £6 million related to production, warehouse, and office expansion, with spending expected to be weighted toward the second half of the year.
On capital returns, Pollard said the company’s capital allocation policy remains unchanged. While dividends or share buybacks will be considered “at the appropriate time,” he said management does not expect such action during the current financial year. He also said the company continues to assess earnings-accretive opportunities, including potential M&A, where appropriate.
NPD, channel expansion, and retail partnerships
Ryder and Granite emphasized the company’s strategy of addressing a wider “health-conscious” consumer pool beyond core gym-goers, reflecting management’s view that health and wellness has moved into everyday life. Ryder cited the listing of the company’s ABE pre-workouts in Tesco as an example of sports nutrition reaching a mainstream audience.
Ryder also said that becoming a public company has enhanced Applied Nutrition’s credibility, improving its “trust profile” with current and potential partners based on feedback received at global events and expos.
Management described progress across strategic pillars, including increased shelf space with existing customers, expanded product ranges, and entry into new channels and geographies. Ryder highlighted direct-to-consumer as a smaller but important part of the business, including e-commerce and Amazon, with an emphasis on maintaining price integrity.
Ryder called H1 a milestone due to what he described as the company’s “first licensed out deal” in partnership with Morrisons. He said the range was designed to appeal to a younger audience and to consumers seeking high-protein, healthier, convenient options, and he characterized the products as including “GLP-1 friendly, low-calorie, high-protein, high-fiber meals.” Ryder said early sales and customer feedback had been positive.
On NPD, Ryder said innovation is “the engine” of the business and outlined three focus areas: refreshing existing products (citing a Slush Puppie flavor collaboration across ABE powder and carbonated drinks), filling gaps in the range (including a “40+ Wellness Range” targeting needs such as sleep and joint support), and moving quickly on emerging trends. Management discussed creatine as a major trend and pointed to new formats including gummies, stick packs, effervescents, and chews.
Middle East shipping disruption and whey inflation
Ryder said the company continues to monitor the evolving Middle East situation and acknowledged disruption to shipping routes and uncertainty about duration. He said the business is working with customers to adapt routes and logistics, including evaluating an alternative overland route from Turkey. Ryder said the company expects some reduction in volumes into the region in H2, but reiterated there was no change to FY2026 revenue guidance of £140 million.
In the Q&A, management said the primary visible impact had been short-term shipping disruption and container rerouting, but noted shipping lines had established new routes that were expected to be unaffected and had already gone live.
On input costs, management described whey as the primary area of pressure, with prices increasing for nearly 24 months. Ryder said the company has not passed through increases as quickly as some competitors and is less concentrated in whey than certain peers, but plans a “small price increase” effective April 5, noting the last price increase was in January 2025. He also said the company delayed raising prices after relaunching Critical Whey protein in September 2025 to avoid increasing prices immediately after the reformulation.
Looking ahead, management reiterated confidence in meeting the upgraded full-year revenue target, citing a full NPD pipeline and continued channel and geographic expansion, while balancing reinvestment in marketing and growth initiatives.
About APN Resources (LON:APN)
Applied Nutrition plc (LSE: APN) is a leading sports nutrition, health and wellness brand, which formulates and creates nutrition products with a stated aim of being the world’s most trusted and innovative brand in the market.
Headquartered in the UK, the Group sells products in over 85 countries worldwide and has a diverse product range, targeting elite athletes, gym goers and health-conscious consumers. Applied Nutrition has developed and launched four ranges under the umbrella of the Applied Nutrition brand – Applied Nutrition, ABE, BodyFuel, and Endurance.
