Mondelēz has signed a deal to make sports nutrition products under the Sour Patch Kids brand
Shares in Applied Nutrition PLC (LSE:APN) bulked up 11.5% to 271.5p after the company raised its annual revenue outlook and announced a $16 million acquisition in the US, alongside a new licensing agreement with US food giant Mondelēz.
The UK sports nutrition and wellness group said revenue for the year ending 31 July 2026 is now expected to be approximately £148 million, ahead of market expectations, with EBITDA margin expected to be in line with consensus forecasts.
Alongside the trading update, the company revealed that it has bought US sports nutrition manufacturer Nutrablend Group for $16 million, funded from existing cash resources.
The deal includes a manufacturing and warehousing facility in Buffalo, New York, production equipment, inventory and two in-house brands.
Applied Nutrition said the acquisition would provide production capacity capable of supporting up to $300 million of annual revenue in the US market, while reducing freight, logistics and import costs and improving service levels for North American customers.
The company expects the acquisition to be earnings-enhancing in the 2027 financial year, contributing at least $30 million of revenue at a high single-digit EBITDA margin.
Furthermore, Mondelēz International has signed a licensing deal to develop and manufacture sports nutrition products under the Sour Patch Kids and Swedish Fish brands in the US and Canada.
The range is expected to launch in August and initially be stocked in 2,200 Walmart stores and 1,300 GNC outlets.
Applied Nutrition chief executive Thomas Ryder said the Mondelēz agreement “represents a significant endorsement of the Group’s capabilities, underlines the strength of our execution and shows our ability to deliver new, vibrant products to market”.
More widely, he said: “Demand across our markets shows no sign of abating and we are well-positioned to deliver on what consumers need for their health and wellness journey.”
Broker Peel Hunt said it was a “strong trading update”, with “good momentum across all territories”.
“While there will have been an initial hit to revenue through the Middle East, this has now normalised, with the group having re-routed distribution.”
New guidance for revenue around £148 million was ahead of its previous forecast of £140 million, leading to analysts upgrading their pre-tax profit forecast by over 7% to £42.9 million.
The Nutrablend acquisition means they further expect to upgrade revenue for the 2027 financial year from £155 million to £190 million, with PBT from £43.5 million to £49 million.
** UPDATE: Adds share price and adds broker comment **