Applied Nutrition smashes FY25 revenue guidance and raises the bar for FY26
Applied Nutrition has delivered a punchy trading update for the year to 31 July 2025, with revenue and net cash both ahead of market expectations. The company’s top line grew about 24% year-on-year to approximately £107 million, and adjusted EBITDA rose around 19% year-on-year from £26 million in FY24. Importantly, these FY25 figures are subject to audit.
Management also nudged FY26 revenue guidance higher, saying they now expect revenue to be ahead of current market expectations. For context, consensus before today had FY26 revenue at £112.4 million.
Headline numbers at a glance
| Metric | FY24 | FY25 (pre-audit) | Consensus before update | Comment |
|---|---|---|---|---|
| Revenue | £86 million | c.£107 million | FY25: £100.0 million | Beat driven by strong H2 |
| Adjusted EBITDA | £26 million | Up c.19% YoY | Not disclosed | Growth, but lagging revenue growth |
| Net cash (ex IFRS 16) | Not disclosed | c.£18.5 million | FY25: £16.6 million | Ahead of expectations |
| FY26 revenue outlook | – | – | £112.4 million | Now expected to be ahead of this |
| H2 FY25 revenue | – | c.£60 million | – | Strong second-half trading |
Notes: Adjusted EBITDA excludes exceptional items, which are expected to relate only to the FY25 IPO. “Ex IFRS 16” means lease liabilities are excluded from the net cash figure.
What drove the beat – strong H2 and a scaled B2B model
The update credits “strong second-half trading” for the outperformance, with approximately £60 million of revenue booked in H2. That suggests momentum accelerated into year end. The strategy remains multi-pillar and global, with the company leaning on a B2B-focused go-to-market approach that has proven capital-light and scalable.
Applied Nutrition’s breadth is a competitive asset. The brand spans four product ranges – Applied Nutrition, ABE, BodyFuel, and Endurance – covering over 100 products. Most are formulated and largely manufactured in-house at the Knowsley, Liverpool site, which helps the Group move quickly with innovation and respond to consumer trends across 85+ countries.
Cash position – ahead of expectations and pointing to discipline
Net cash at period end came in around £18.5 million, excluding IFRS 16 lease liabilities. That is ahead of the pre-update consensus of £16.6 million. For investors, net cash strength matters because it supports ongoing product development, working capital for growth, and optionality for marketing and distribution without stretching the balance sheet.
Quick explainer: IFRS 16 changes how leases are accounted for. By stating net cash “excluding IFRS 16 liabilities”, the company is isolating cash and traditional debt from lease-related obligations, which helps comparability with prior periods and peer sets.
FY26 outlook – revenue set to top current forecasts
Management now expects FY26 revenue to be ahead of current market expectations. Before this announcement, consensus sat at £112.4 million. No new figure is given today, but the signal is clear – recent trading and strategy progress are giving the Board confidence.
There is no explicit guidance on FY26 profitability or cash, and the company rightly reminds readers that forward-looking statements carry risks and uncertainties. Still, upgrading revenue expectations this early is a constructive sign.
Reading between the lines – margins, mix and what to watch
Adjusted EBITDA grew approximately 19% year-on-year, while revenue rose about 24%. That gap often hints at some margin pressure – possibly mix effects, input costs, or investment in growth. The RNS does not break down gross margin or operating costs, so we will need to wait for November’s full results to see the moving parts.
The B2B model has been a tailwind for profitable growth, and the in-house manufacturing capability should support margin resilience over time. Key things to watch in November: gross margin trends, the shape of H2 profitability, cash conversion, and any commentary on distribution, pricing, or one-off IPO-related costs (flagged as exceptional items).
Strategy and moat – breadth, speed and distribution
The Group’s proposition is built on three core strengths called out today: B2B-focused distribution, a broad and high-quality product set, and industry-leading new product development. Selling largely via B2B can keep customer acquisition costs lower and accelerate international scale. In-house formulation and manufacturing lets them iterate faster, refresh products frequently, and react to fast-moving categories like hydration, energy, and endurance.
Add to that the brand umbrella – Applied Nutrition, ABE, BodyFuel, Endurance – and you get multiple on-ramps for different consumer segments, from elite athletes to gym goers and health-conscious consumers. That diversification has been a meaningful driver of growth in the UK, Europe and internationally.
Key dates and disclosures investors need
- FY25 results are expected on or around 10 November 2025.
- All FY25 figures in this update are subject to audit.
- Consensus (before today): FY25 revenue £100.0 million, FY25 net cash £16.6 million; FY26 revenue £112.4 million, FY26 net cash £31.5 million.
- Forward-looking statements are included and may differ from actual outcomes.
My take – a clean beat, confident outlook, and a few fair questions
This reads as a clean and credible update. Revenue of about £107 million is a proper beat versus the £100 million consensus, net cash has landed ahead, and H2 momentum looks strong. Raising FY26 revenue expectations is exactly what the market wants to see.
The only caution flag is that EBITDA growth trailed revenue growth, suggesting some margin give. That is not unusual in a fast-growing, innovation-heavy consumer brand and may reflect deliberate investment. The full results will tell us if this was mix, cost inflation, or step-up in growth spend.
Overall, it is a strong print. The brand portfolio is broad, the B2B model remains a structural advantage, and the balance sheet looks healthy. If November confirms that margins are stable and cash conversion remains solid, the investment case strengthens further into FY26.
