Applied Nutrition plc (LSE:APN) has increased its expectations for the financial year ending 31 July 2026 following continued strong trading performance. The company now expects revenue of approximately £148 million while maintaining EBITDA margins in line with current market forecasts.
Management noted that the impact of its recently completed U.S. acquisition will be limited in the current financial year, with a more detailed update on performance expected when full-year results are released in August.
Buffalo Acquisition Strengthens U.S. Manufacturing Footprint
The group has acquired the trade and substantially all assets of U.S.-based sports nutrition manufacturer Nutrablend Group for $16 million in cash. The transaction includes a fully equipped manufacturing and warehousing facility in Buffalo, New York, significantly expanding Applied Nutrition’s production capabilities in North America.
The site is capable of supporting annual revenue production of around $300 million and is expected to reduce logistics costs while strengthening supply chain efficiency. Approximately 100 employees will join the business as part of the acquisition.
In addition to supporting Applied Nutrition’s own brands, including Basic Supplements and GR8 Lifestyle, the facility provides opportunities to expand white-label manufacturing activities through the AN Labz platform.
Operational Benefits Expected to Drive Future Growth
Applied Nutrition intends to relocate production of powders sold in North America from the UK and third-party manufacturing partners to the Buffalo facility. The move is expected to increase manufacturing flexibility, improve supply chain resilience and free up capacity at its UK operations.
Management believes the acquisition will become earnings accretive in FY27 and has outlined a target of generating at least $30 million in additional annual revenue from the acquired operations. Around 65% of this revenue is expected to come from white-label manufacturing contracts, with EBITDA margins projected to be in the high single digits.
Mondelēz Partnership Expands Consumer Reach
Alongside the acquisition, the company has entered into a flavour collaboration and licensing agreement with Mondelēz International. The partnership will see the launch of sports nutrition products under the AN Supps & SOUR PATCH KIDS and AN Supps & SWEDISH FISH brands.
The product range is scheduled to launch in August 2026 and will combine Applied Nutrition’s formulation expertise with its growing U.S. manufacturing capabilities. Distribution is expected to begin through approximately 2,200 Walmart stores and 1,300 GNC corporate locations across the United States and Canada, significantly expanding the company’s retail presence in North America.
Outlook Remains Supported by Strong Fundamentals
Applied Nutrition’s outlook continues to benefit from rapid revenue growth, improving earnings, strong free cash flow generation and relatively low levels of debt. These factors provide a solid foundation for future expansion and support management’s confidence in the business.
While technical indicators remain less supportive, with the share price trading below key moving averages and momentum measures signalling weakness, valuation metrics remain relatively attractive based on earnings multiples. Dividend data is not currently available, leaving investors focused primarily on growth prospects and operational execution.
More about Applied Nutrition PLC
Applied Nutrition plc is a UK-based sports nutrition, health and wellness company offering products across its AN and ABE brands. The business operates a vertically integrated model that combines product development, manufacturing and distribution, serving customers through retail, specialist and online channels worldwide. The company has increasingly focused on expanding its North American presence through strategic investments, manufacturing capabilities and branded partnerships.
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