Myprotein owner THG cuts profit outlook after deal to sell flavourings brand
The move aligns with plans to simplify the wider group and generate cash to reduce debts on its balance sheets.
THG said it acquired Claremont for £52 million five years ago and had agreed to sell it for double the price.
But following the sale, it expects annual earnings before interest, tax and other costs to be reduced by around £5 million this year, and £10 million next year.
THG revealed its adjusted earnings totalled about £24 million over the first half of this year – down from the £37 million generated last year.
The decline was driven by higher prices of whey – which is used for protein products like powders – than the previous year.
However, this has helped raise consumer prices, leading to a jump in revenues in June and July for the group's nutrition arm, it told investors.
THG said it would limit further price hikes over the second half of 2025 in a bid to retain customers and grow its share of the market.
Matthew Moulding, THG's chief executive, said: 'Claremont has been a huge success, building Myprotein's global licensing franchise from a standing start to partnering with category-leading brands in just a few years.'
He said the decisions the business has taken to grow Myprotein's market share 'aligns clearly with our wider strategy to streamline the group and focus on our core strengths, whilst maintaining a strong balance sheet'.
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