Applied Nutrition smashes H1: rapid growth, stronger cash, and runway to £300m capacity
Applied Nutrition’s half-year numbers land with a thump: revenue up 56.5% to £74.5 million, adjusted EBITDA up 55.8% to £21.5 million, and statutory EPS up 77.1% to 6.2p. It is another period of broad-based outperformance, with growth across the UK, Europe and international markets – and importantly, margins holding steady despite higher whey prices.
The Board’s full-year revenue guidance remains approximately £140 million, with trading weighted to H1 after a stronger-than-expected peak Health, Fitness & Wellbeing period. Against a backdrop of continued category tailwinds and stepped-up innovation, this reads as a confident – but disciplined – update.
Headline numbers you should know
| Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Revenue | £74.5m | £47.6m | +56.5% |
| Gross profit | £34.8m | £22.3m | +56.1% |
| Adjusted EBITDA (margin) | £21.5m (28.9%) | £13.8m (29.0%) | +55.8% |
| Adjusted PBT | £20.9m | £13.6m | +53.7% |
| Statutory PBT | £20.9m | £11.8m | +77.1% |
| Basic & diluted EPS | 6.2p | 3.5p | +77.1% |
| Free cash flow | £7.9m | £8.9m | -11.2% |
| Net cash (ex IFRS 16) | £26.4m | £10.9m | n/a |
Quick jargon buster: EBITDA is operating profit before interest, tax, depreciation and amortisation – a proxy for cash earnings. Free cash flow is cash generated after capex and lease payments. Free cash flow conversion shows how much adjusted profit after tax is turning into free cash – it was 51.3% in H1 FY26 (vs 84.0% last year), reflecting heavier working capital usage after the January peak.
Where the growth came from: customers, channels and categories
Growth was both deep and wide. The UK rose 45.8% to £31.5 million, Europe grew 37.5% to £8.8 million, and International jumped 74.5% to £34.2 million, helped by strong demand in the Middle East and Latin America. Existing customers bought more across more shelves, with expanded listings in UK grocers, specialists and discounters.
Product-wise, the refresh of Critical Whey – improved mouthfeel, flavours and verified protein per serving – is working, with sales up 128% year-on-year in H1. The company also leaned into trends and formats: an expanded creatine line-up, additional protein water flavours, a new 40+ range for men, and a Slush Puppie collaboration under ABE. Notably, ABE is now in Tesco, showing how mainstream pre-workout has become.
New channels matter too. The first out-licensing deal with Morrisons puts Applied-branded high-protein foods into mainstream grocery – early sales and feedback are reported as strong. Internationally, the US is still early-stage, but H2 will focus on bringing a wider range and flavour collaborations to the market.
Margins are holding up despite whey – and marketing is stepping up
Gross margin was stable at 46.7% (down just 10bps). A favourable raw material mix added 110bps, offsetting higher whey prices and a 110bps rise in direct staff costs tied to higher wage rates and overtime to meet demand. Administrative expenses were 18.9% of revenue, with additional listed company costs of £0.7 million making like-for-like comparisons a touch noisy.
Marketing stepped up by 60bps as a share of revenue to support growth without materially denting margins. Adjusted EBITDA margin came in at 28.9% (29.0% prior year) – impressive resilience given volume growth and the investment in brand.
Cash, working capital and firepower
Net cash from operating activities rose 16.9% to £8.3 million, and net cash on the balance sheet increased to £26.4 million. Working capital usage increased to £44.4 million, in line with revenue growth, with working capital days steady at 109. The H1 weighting and peak-period shipments left more receivables not yet due at the cut-off – a sensible explanation for the lower free cash conversion at 51.3%.
Capex was modest at £0.2 million in the half, but the investment phase has begun post-period-end: construction has started on the global distribution facility and head office, plus phase 3 of the factory extension. Revenue capability is set to rise to around £300 million once complete. There is also a £10.0 million revolving credit facility undrawn, keeping optionality for M&A or faster capacity additions.
Strategy in motion: multi-pillar growth with B2B scale and D2C support
The model remains B2B-first – wholesale into distributors and retailers – which keeps expansion capital-light and leverages local expertise. Direct-to-consumer (D2C) is a smaller but growing channel that aids brand engagement and subscriptions, including via the Applied Nutrition app.
The brand is clearly benefitting from category momentum, with wellness becoming mainstream and new consumer dynamics such as GLP-1 usage supporting balanced, protein-rich diets. The company even notes Morrisons’ “GLP-1 friendly” range. The FTSE 250 inclusion in December also boosts credibility with partners and consumers.
Outlook: guidance unchanged, some H2 caution around the Middle East
Management expects approximately £140 million of revenue for FY26, with a more H1-weighted profile due to peak trading and accelerated demand for new launches. The company is monitoring shipping disruption and purchasing behaviour in the Middle East and expects some reduction in H2 volumes there, but guidance is unchanged at this stage.
On capital allocation, the company is prioritising capacity, efficiency and selective M&A. There is no dividend planned before FY27, keeping cash focused on growth investments.
What this means for investors
- Strong, diversified growth: UK, Europe and International all grew, with International up 74.5% – a sign the brand is scaling globally.
- Margin resilience: Gross margin steady at 46.7% and EBITDA margin at 28.9% despite higher whey and more marketing.
- Innovation engine: Big uplift from Critical Whey (+128%), broader creatine offerings, and credible mainstream wins like Tesco and the Morrisons out-licensing deal.
- Balance sheet strength: £26.4 million net cash and an undrawn £10.0 million facility provide ample flexibility.
- Capacity runway: New distribution and factory expansion target revenue capability of around £300 million – key for multi-year growth.
Watch-fors
- H2 mix and logistics: Management expects some Middle East softness in H2 due to shipping and purchasing disruption.
- Working capital intensity: Free cash flow conversion dipped to 51.3% after the January peak – understandable, but worth tracking.
- No dividend before FY27: Sensible for growth, but income investors will need patience.
Governance and engagement
Committee refresh: Marnie Millard joins the Audit and Risk Committee and Peter Cowgill joins the Remuneration Committee, aligning with UK Corporate Governance Code recommendations for FTSE 250 companies.
The company is hosting a retail investor presentation at 16:00 GMT today. Registration link provided in the RNS.
Bottom line
This is a high-quality print: fast growth, stable margins, strong cash, and clear capacity planning. Guidance of approximately £140 million looks sensible given the H1 pull-forward, and management is realistic about Middle East headwinds without shifting the full-year view.
In my view, Applied Nutrition is executing the playbook you want in this category – keep innovating, deepen retail relationships, scale internationally, and build the operational backbone before demand outruns capacity. The new facility and factory expansion to around £300 million revenue capability is the tell: management is building for much more than one strong half.
