Applied Nutrition (APN) H1 2025 earnings summary

Executive summary

• Achieved strong H1 FY25 growth with revenue of £47.6m, exceeding IPO guidance and supporting the full-year target of £100m.

• UK and Europe saw robust year-on-year growth (34% and 39% respectively), while international sales were impacted by Middle East order timing.

• Strategic focus on increasing sales with existing customers, expanding shelf space, launching new products, and organic D2C growth.

• Factory extension completed in August 2024, increasing capacity to £160m in revenue.

• IPO on the London Stock Exchange in October 2024 increased brand profile and credibility.

Financial highlights

• H1 FY25 revenue: £47.6m, up 19% year-over-year on a normalised basis, exceeding guidance.

• Gross margin at 46.9% (H1 FY24: 49.9%), resilient despite higher whey prices due to product mix.

• Adjusted EBITDA £13.8m (29% margin); free cash flow conversion 64.5%; net cash at period end £10.9m.

• D2C sales grew 35% year-over-year, now representing 10% of revenue.

• Basic and diluted EPS 3.5p; adjusted EPS 4.2p.

Outlook and guidance

• Full-year revenue guidance of £100m reaffirmed, with profitability and cash flow expected in line with market expectations.

• Trading post-period remains strong with record March revenue.

• New partnerships in the US and Latin America underpin over 50% of FY26 expected revenue growth.

• No plans to enter new territories in 2025; focus on deepening penetration in existing and recently registered markets.

• High whey prices not expected to materially impact margins due to diversified product mix and managed procurement.