Applied Nutrition looks at move to US production to reduce tariffs impact
Applied Nutrition has said it could move the production of some of its products to the US to avoid future tariff costs as the brand revealed higher sales on the back of surging demand in the UK.
Bosses added that they see more growth opportunities internationally, particularly in countries such as Canada which have been heavily affected by the tariff programme.
However, shares in the sports nutrition and health business fell as it also revealed a drop in profits for the past half-year.
The company, which floated on the London Stock Exchange last year with a £350 million valuation, saw revenues increase by 4.8% to £47.6 million for the six months to January.
It said this is ahead of its forecasts at the time of its stock market listing, with the business on track to meet its full-year revenue guidance of £100 million.
The Coleen Rooney-backed firm said trading in more recent weeks has remained 'strong', with record revenues in March.
As a result, the Liverpool-based company held firm on its profit and cash flow forecasts for the year.
Applied Nutrition stressed on Monday that it 'does not expect to be materially impacted' by changes to US tariffs, after President Donald Trump confirmed a blanket 10% tariff for goods imported to the US from countries including the UK.
Nevertheless, the business said it has 'a number of options open to it to mitigate impact, such as moving production of liquid products currently produced in the UK to being manufactured in the US'.
Group chief finance officer Joe Pollard told the PA news agency the business currently has 'limited exposure' to the US but highlighted that there could be some positives from the tariffs rules.
'The US is less than 10% of our revenues but I also think, in some other regions, it means there is an opportunity there,' he said.
'It gives us a lot of opportunity in countries like Canada where they are looking to source from companies in the UK where they may have previously used a US supplier.'
Meanwhile, the company said its profitability is set to be boosted by efforts to drive efficiencies, including a recent factory extension.
It added that it does not expect a material impact from a recent jump in whey protein prices, as it manages its cost base.
It came as the firm reported that pre-tax profits slipped by 26.7% to £11.8 million for the past six months.
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