Applied Nutrition Plc · LSE:APN
Applied Nutrition — H1 2025 Earnings Presentation
37 slides from Applied Nutrition's earnings presentation, Apr 1, 2025
Slide 1: Interim Results: H1 FY25
Interim Results: H1 FY25 APPLIED“ NUTRITION
Slide 2: Agenda
Agenda Topics Presenters Introduction Strategic progress H1 FY25 financial performance Current trading & outlook Q&A Thomas Ryder Steven Granite Joe Pollard Founder & Group Group COO Group CFO CEO 2
Slide 3: Strong H1 FY25 performance, significant strategic momentum, FY25 guidance reiterated
Strong H1 FY25 performance, significant strategic momentum, FY25 guidance reiterated Strong growth in the Significant strategic Confident for H2 and period progress beyond H1 FY25 revenue ahead of IPO guidance Increased sales with existing customers Strong underpin to full year guidance Exceptional
Slide 4: Our vision
Our vision “To ne th v Tio fay’ diiost trusted : aa and innovative sports nutrition, , and wellness brand”
Slide 5: Broad range of target consumers
Broad range of target consumers Applied Nutrition targets a wide range of consumers • Professional athletes at the top of their game using sports nutrition products on a daily basis to maximise performance Performance Athlete Global coverage selling to over 85 countries • Serious gym-goers with the
Slide 6: Diversified by category
Diversified by category Other Weight Other management 1% 4% 6% Weight management 18% Pre-workout Intra- 20% Workout 11% Pre-workout 21% Intra- Workout 11% FY20 Health & H1 FY25 Grab- and-go wellbeing 16% Health & 16% wellbeing 8% Grab-and-go Non-whey 6% 3% Non-whey Whey Whey 10% 20% 29% Protein Prot
Slide 7: Our ranges appeal to all our target customers
Our ranges appeal to all our target customers # Products FY 24 H11: 74 16 8 8 # Products FY 25 H11: 96 18 12 8 PROTEIN PRE-WORKOUT GRAB-AND-GO Coming in H2 FY25 WEIGHT Coming in H2 FY25 MANAGEMENT HEALTH & WELLBEING INTRA- WORKOUT Dashed boxes represent entry into that product category for that rang
Slide 8: Established and diverse routes-to-market
Established and diverse routes-to-market Retailers Distributors Gyms / Sports clubs D2C White label • Specialty stores • Sports Nutrition specialist • Commercial gyms • Applied Nutrition website • Manufacture of products • Discounters distributors • Sports clubs (e.g. football (UK, US) for selected
Slide 9: Ingredients for success in the sports nutrition, health, and wellness market
Ingredients for success in the sports nutrition, health, and wellness market Highly accessible Trusted brand with High quality Low risk, cost- products across broad consumer product, effective routes- all markets appeal competitively priced to-market Scalable, nimble, Continuous NPD Strong and Stren
Slide 10: H1 Performance
ALL BLACK EVERYTHING) : ==| \ H1 Performance APPLIED: NUTRITION
Slide 11: Delivery in line with our strategic priorities
Delivery in line with our strategic priorities • Significant progress of the Group’s multi-pillar, global growth strategy: − Further penetration of existing customers − Successful entry into new geographies − Significant new customer wins − Continued expansion of D2C − A healthy pipeline of New Prod
Slide 12: New Product Development driving increased shelf space with new and existing customers
New Product Development driving increased shelf space with new and existing customers We have a deep understanding of the needs for all customers, acting nimbly to expand product ranges through in-house NPD Key launches in H1 FY25 What is it? Fills opportunity Keeps products Accesses emerging gaps f
Slide 13: Increased brand awareness through H1 marketing initiatives
Increased brand awareness through H1 marketing initiatives First TV advert in conjunction with Attended eight expo events in H1 launch of Coleen Rooney range Flavour collaboration Daniel Dubois signed as with Vimto brand ambassador 13
Slide 14: H1 FY25 financial highlights
H1 FY25 financial highlights £47.6m £22.3m £13.8m Revenue Gross profit Adjusted EBITDA 29% 64.5% £10.9m Adjusted EBITDA margin Free cash flow conversion1 Net cash 1Free cash flow conversion is based on Adjusted EBITDA and is stated after tax 14
Slide 15: Strong first half performance
Strong first half performance Normalised H1 revenue growth of c.19%1 H1 2025 revenue of £47.6 million, comfortably ahead of guidance provided at the time of IPO of £46 million £47.6m £45.4m £5.5m c.+19% Normalised H1 FY25 revenue growth of c.19% when adjusting for £5.5 million of orders brought forw
Slide 16: Segmental performance
Segmental performance By Geography By Range Growth: 34% 39% 2%1 £24.7m 9% 25% £21.6m £5.5m £19.6m 57% 7% £16.1m White label 1.5% B2B vs D2C £19.2m1 £6.4m D2C £4.6m 10% UK Europe International1 90% H1 FY24 H1 FY25 B2B 1Underlying H1 FY24 revenue excludes brought forward orders from the Middle East of
Slide 17: Diverse and balanced product mix supports margin stability
Diverse and balanced product mix supports margin stability Diverse product mix Stable margins despite movement in whey price £3.00 Weight Other management £2.00 1% 6% Intra- £1.00 Pre-workout Workout 20% 11% £0.00 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 H1 FY25 -£1.00 Grab-and-go Health & 16% -£2.00 well
Slide 18: Robust gross margin despite whey prices rising
Robust gross margin despite whey prices rising Gross margin bridge 49.9% (1.7%) 47.9% (1.4%) (0.2%) 0.3% 46.9% 44.7% 40.2% Impact on margin primarily a result of increase whey prices FY22 FY23 FY24 H1 FY24 Raw Carriage, Staff costs Other H1 FY25 gross margin materials/ logistics and gross margin pro
Slide 19: Administrative expenses and EBITDA margin
Administrative expenses and EBITDA margin Admin expenses as a % of revenue Adjusted EBITDA margin Additional 23.3% Brought forward investment to revenue inflated 36.1% support IPO margin 18.8% 18.9% 29.7% 30.5% 30.2% 29.0% 14.8% 23.5% 14.2% 10.4% FY22 FY23 FY24 H1 FY24 H2 FY24 H1 FY25 FY22 FY23 FY24
Slide 20: Strong free cash flow conversion in the first half
Strong free cash flow conversion in the first half Free cash flow conversion of 64.5% was significantly ahead of market expectations, resulting in net cash at period end of £10.9 million £18.7m £13.8m £0.4m (£1.7m) (£3.2m) (£0.2m) (£0.3m) (£0.2m) £10.9m (£1.7m) (£14.7m) Dividend (pre-IPO) Working ca
Slide 21: Approach to capital allocation
Approach to capital allocation Policy Delivery and guidance • Completed a manufacturing extension increasing production capacity to Invest to drive organic growth and optimise operations allow revenue growth to approximately £160 million Maintain a strong balance sheet • Net cash position of £10.9m
Slide 22: Summary and Outlook
4 | Summary and Outlook APPLIED“ NUTRITION
Slide 23: Key customer expansion underpinning more than half of FY26 revenue growth
Key customer expansion underpinning more than half of FY26 revenue growth1 New joint business plan with Three new listings in the US Agreed joint business plan with the UK’s leading health and wellbeing store to Entering one of the largest specialty retailers in the US with opportunities for expansi
Slide 24: Confident outlook
Confident outlook • Trading since the half year end remains strong and March was a record month of revenue, providing a further underpin to the full year revenue guidance of £100m • Re-iterate the full year outlook for profitability and cashflow to be in line with market expectations • Given relativ
Slide 25: Questions
APPLIED“? NUTRITION Questions
Slide 26: Appendix
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Slide 27: The Applied Nutrition ranges
The Applied Nutrition ranges Select products: Launched in 2014, a high Launched in 2016, a highly Launched in 2023, a range of Launched in 2022, a Range quality & trusted brand with formulated, premium range entry-level products aimed at specialist product range description competitive pricing and t
Slide 28: Multi-pillar growth strategy underpinned by global megatrends
Multi-pillar growth strategy underpinned by global megatrends Increased focus on sports nutrition, health and wellness globally, driving key consumer trends… Consumers focused on Greater awareness & Broader product offering More accessible and living a healthy lifestyle knowledge of nutrition and ap
Slide 29: Established position in the UK
Established position in the UK Continued growth with existing and new customers Sales in the UK are made through a number of channels; retailers, distributors, and gyms and sports clubs. Europe 34% revenue growth to £21.6m (H1 FY24: £16.1m) UK International Key strategic achievements • Expanded pres
Slide 30: European growth driven by deepened retail penetration and entry into new geographies
European growth driven by deepened retail penetration and entry into new geographies The Group operates a predominantly distributor-led model in Europe, alongside sales through key retailers. Europe 39% revenue growth to £6.4m (H1 FY24: £4.6m) International UK Key strategic achievements Deepened pen
Slide 31: International, excluding Middle East, delivered strong growth in the first half
International, excluding Middle East, delivered strong growth in the first half International sales are balanced between Distributors and Retailers. Europe Revenue of £19.6m (H1 FY24: £24.7m) – with £5.5 million of orders brought forward by customers in the Middle East as outlined at the IPO Interna
Slide 32: Continued steady progress in the US
Continued steady progress in the US US ‘AN Performance’ range launched with early success following launch with The Vitamin Shoppe and new listings with three major retailers Key strategic achievements • Launch of a range of products under the ‘AN Performance’ range with The Vitamin Shoppe across ov
Slide 33: Why we will continue to win market share over the long-term
Why we will continue to win market share over the long-term Great We make products that look great, feel great, taste great, using expert 1 products formulation and all at a competitive price Highly We are able to bring new products to the market quickly and efficiently, keeping 2 effective NPD prod
Slide 34: Significant opportunity ahead
Significant opportunity ahead Fast growing, profitable, and cash generative global supplier in a massive addressable sports nutrition, health, and wellness supplements market Global market opportunity of £189bn1 with structural market growth driven by an increased focus on 1 Significant market oppor
Slide 35: Board with significant expertise to deliver future success
Board with significant expertise to deliver future success Thomas Ryder Steven Granite Joe Pollard Founder & Group CEO Group COO Group CFO Executive Directors 2014 (inception) – present 2020 – present 2021 – present 15+ years of experience in the Previously CEO of a private equity- Previously Direct
Slide 36: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in it.
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