APN Resources H1 Earnings Call Highlights
APN Resources (LON:APN) executives reported strong first-half FY2026 growth and entered the second half with ‘great momentum,’ while maintaining full-year revenue guidance of £140 million despite shipping disruption tied to the evolving Middle East situation.
Founder and CEO Thomas Ryder was joined on the call by COO Steven Granite and CFO Joe Pollard to discuss operating performance, investment plans, and product development. Management highlighted broad-based channel growth, expanded international reach, and continued emphasis on new product development (NPD) as key drivers of the period.
Financial Highlights
Pollard said the business recorded ‘strong growth during the period,’ leading management to increase its FY2026 guidance twice during the first half. Group revenue rose 57% year over year to £74.5 million, which Pollard noted was also 24% higher than the second half of FY2025.
Gross profit and adjusted EBITDA increased by 56% apiece, according to management. Adjusted EBITDA was £21.5 million, with an adjusted EBITDA margin of 28.9%, which Pollard said was in line with performance since the company’s IPO. Earnings per share were 6.2p on both a basic and diluted basis. Net cash at the end of the period was £26.4 million.
Geographic Performance
Management described growth across all geographies. In the UK, Pollard said performance was supported by additional listings, deeper distribution, and expanded product ranges. Europe saw ‘significant growth’ across key territories, particularly Spain and Germany. In the rest of world segment, the company continued momentum from the second half of FY2025, driven by expanded listings among key distributors.
Pollard pointed to Latin America as a particular area of strength, saying sales in the region rose 110% compared to the first half of FY2025. Ryder and Granite later cited expansion in Latin America and pointed to channel opportunities such as pharmacy distribution in South America.
Product Economics and Development
On product economics, Pollard said gross margin was in line with the same period a year earlier despite higher whey prices, which he said was muted by the group’s diverse product range and active management of exposure to whey. He added that lower shipping prices from China provided a small tailwind through carriage, logistics, and import duty costs, while staff costs were a small headwind after salary increases implemented to remain competitive without a corresponding increase in selling prices.
Pollard said the product mix remained well-balanced and that outside of whey protein, the company did not see significant raw material volatility. He also noted strong growth in non-whey protein products, with sales up 83% year over year, and said the intra-workout category saw significant growth as products such as creatine gain recognition for broader benefits beyond traditional sports nutrition audiences.
Capital Expenditure and Expansion Plans
Granite said construction has commenced on a new global distribution facility and head office, which is intended to consolidate pallets currently stored off-site, improve efficiency, and reduce order lead times. While the site is leased, Granite said the company plans to invest £3.5 million to £4 million in fit-out and machinery, with an expected operational start in February 2027.
Granite also said construction has begun on phase three of the company’s production facility, expected to be live in late summer 2026 and to increase sales capacity to around £300 million. He described that investment as ‘circa £2 million.’ Management added that the company decided not to invest in an effervescent tablet line that had been earmarked for an additional £2.5 million.
Capital Returns and M&A
On capital returns, Pollard said the company’s capital allocation policy remains unchanged. While dividends or share buybacks will be considered ‘at the appropriate time,’ he said management does not expect such action during the current financial year. He also said the company continues to assess earnings-accretive opportunities, including potential M&A, where appropriate.
Strategic Pillars and NPD
Ryder and Granite emphasized the company’s strategy of addressing a wider ‘health-conscious’ consumer pool beyond core gym-goers, reflecting management’s view that health and wellness has moved into everyday life. Ryder cited the listing of the company’s ABE pre-workouts in Tesco as an example of sports nutrition reaching a mainstream audience.
Ryder also said that becoming a public company has enhanced Applied Nutrition’s credibility, improving its ‘trust profile’ with current and potential partners based on feedback received at global events and expos.
Management described progress across strategic pillars, including increased shelf space with existing customers, expanded product ranges, and entry into new channels and geographies. Ryder highlighted direct-to-consumer as a smaller but important part of the business, including e-commerce and Amazon, with an emphasis on maintaining price integrity.
Ryder called H1 a milestone due to what he described as the company’s ‘first licensed out deal’ in partnership with Morrisons. He said the range was designed to appeal to a younger audience and to consumers seeking high-protein, healthier, convenient options, and he characterized the products as including ‘GLP-1 friendly, low-calorie, high-protein, high-fiber meals.’ Ryder said early sales and customer feedback had been positive.
NPD and Emerging Trends
On NPD, Ryder said innovation is ‘the engine’ of the business and outlined three focus areas: refreshing existing products (citing a Slush Puppie flavor collaboration across ABE powder and carbonated drinks), filling gaps in the range (including a ’40+ Wellness Range’ targeting needs such as sleep and joint support), and moving quickly on emerging trends. Management discussed creatine as a major trend and pointed to new formats including gummies, stick packs, effervescents, and chews.
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