{
  "id": 3477721,
  "title": "Whey and weight-loss drugs to eat into Applied Nutrition profit",
  "url": "https://urgent.news/2026/08/26/whey-and-weight-loss-drugs-to-eat-into-applied-nutrition-profit",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-26T09:23:00.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/whey-and-weight-loss-drugs-to-eat-into-applied-nutrition-profit/"
  },
  "original_language": "en",
  "account": "Applied Nutrition, the protein-shake producer, has issued a warning that a five-fold surge in whey protein prices will negatively impact its profit margins next year, despite beefing up its earnings forecasts. The company's adjusted pre-tax profit increased by more than 40% in the 12 months ending August, which management said was \"considerably ahead of consensus market expectations.\" They anticipate a 13% further growth in earnings to £49m. However, they have cautioned that \"significantly higher\" whey protein prices will eat into their margins in the upcoming year. This is due to a five-fold price increase in whey protein in recent years, driven partly by a sharp rise in demand fueled by weight-loss drugs. One of the side effects of GLP-1 drugs like Wegovy and Mounjaro is muscle atrophy, leading users to adjust their diets and increase weight training. Consequently, individuals on these medications have been gravitating towards protein-rich diets and more weight training to maintain muscle mass while losing weight. This heightened demand for whey protein, the most common type found in bars, shakes, and supplements, has collided with a fixed supply chain, pushing up prices. Despite this, Applied Nutrition remains optimistic about future growth. The company expects revenue to exceed £200m for the first time in its history and pre-tax profit to fall just shy of £50m. Their shares rose 7.5% at market open following the release of their full-year results. This latest development adds to the growing impact of weight-loss drugs on various industries. Food giants like Nestle and PepsiCo have introduced nutrient-dense ready-meals to cater to people with suppressed appetites but still requiring a balanced diet. Additionally, analysts and investment managers have highlighted the potential slowdown in the growth prospects of large alcohol companies due to the drugs' effect on demand for drinking. Terry Smith, who manages the £13bn Fundsmith, recently sold a stake in Diageo, citing the impact GLP-1s will have on alcohol consumption.",
  "summary": "Applied Nutrition has warned that a five-fold increase in whey protein prices will eat into its bottom line next year even as it beefed up its forecasts for the next year. The protein-shake maker revealed its adjusted pre-tax profit had risen by more than 40 per cent in the 12 months to August, a figure [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "This Is Money",
        "title": "Applied Nutrition lifts outlook as revenues at firm backed by Coleen Rooney soar",
        "url": "https://urgent.news/2026/08/26/applied-nutrition-lifts-outlook-as-revenues-at-firm-backed-by-coleen",
        "published": "2026-08-26T10:11:47.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}