Applied Nutrition profits rise but Middle East sales to be impacted by Iran war

Applied Nutrition has revealed a surge in profits over the past six months but cautioned that sales volumes in the Middle East are set to be impacted by the conflict in the region.

It said it therefore expects “some reduction” in sales volumes in the region in the current half-year.

However, Applied Nutrition said it still expects to meet revenue targets for the year of around £140 million.

The company added: “Importantly, we have managed similar disruption in the past, supported by the agility of our operations.

“In this instance, we are working closely with customers to adapt our routes into the region and logistics arrangements to safeguard continued supply to those customers.”
It came as the Liverpool-based firm revealed that pre-tax profits jumped by 77.1% to £20.9 million for the six months to January 31, compared with a year earlier.

Applied Nutrition said this came after sales rose by 56.5% to £74.5 million for the half-year.

Last month, the group upgraded its trading guidance on the back of stronger recent demand.

It said on Monday that retail orders “exceeded expectations” in the peak health, fitness and wellness period across January.

As a result, the retail firm said it expects sales to have been weighted towards the first-half of the current financial year.

UK sales grew by 45.8% to £31.5 million over the half-year, buoyed by new listings across UK high street retailers and discount stores.

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Sales from its international arm grew 74.5% as it benefited from “significant increased demand in the Middle East”.

Thomas Ryder, chief executive of Applied Nutrition, said: “Our vision to become the world’s most trusted and innovative sports nutrition, health, and wellness brand remains at the heart of our ambition.

“This six-month period has further highlighted both the breadth of opportunity before us and our proven ability to realise it.

“The performance and momentum across the business reflects a consumer environment that continues to shift decisively towards health, fitness and wellbeing.”