Latest news with #MatthewMoulding
Yahoo
5 days ago
- Business
- Yahoo
THG agrees to sell Claremont Ingredients for $137m
UK-headquartered e-commerce group THG has agreed to sell flavour manufacturing laboratory Claremont Ingredients to the Nactarome Group for £103m ($136.8m) in cash. The divestment of Claremont from THG Nutrition aligns with its strategy to streamline the company, concentrate on core competencies and accelerate the move towards a net cash balance sheet. THG operates through two consumer businesses, THG Nutrition and THG Beauty. THG Nutrition is led by the online sports nutrition brand Myprotein. Nactarome Group, an international flavour specialist majority-owned by TA Associates, emerged as the successful bidder following a highly competitive process. This sale represents a significant return on THG's acquisition of Claremont for £52m in late 2020. Claremont was initially acquired to boost Myprotein's global licensing range and new product development. THG CEO Matthew Moulding stated: "This disposal highlights the significant value embedded across THG's portfolio. My sincere thanks go to the entire Claremont team for their fantastic contribution and hard work. "Finally, the decisions we are taking as a business to support our customers and 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." Claremont has been financially beneficial for THG, generating significant cash since acquisition, with the proceeds from the sale contributing to reducing net leverage and borrowing costs. For the financial year 2024 (FY24), Claremont's revenue was £14m, with adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) contributions of £7m and annual capital expenditure of less than £1m. Post-disposal, THG anticipates a reduction in group EBITDA of £5m for FY25 and £10m for FY26. Looking at the first half (H1) of 2025, THG's interim results are expected to align with the guidance provided at the Annual General Meeting, with adjusted EBITDA at around £24m. This reflects the impact of higher whey pricing year over year in the nutrition segment. With stable whey prices and strong global demand, THG has adjusted consumer prices accordingly. The group's cash and available facilities stood at £278m following a refinancing in the first quarter (Q1) of 2025, which significantly reduced gross debt. Net debt before the proceeds from Claremont's sale was £330m. In the second half of 2025 and for the full financial year of 2026, THG Nutrition is expected to deliver double-digit revenue growth, with plans to limit price increases to maintain market share and customer loyalty. Myprotein has decided to cap price hikes in the second half of 2025, which is expected to boost the expansion of its global offline retail presence from 34,000 to a target of 100,000. The customer-centric strategy will be backed by a £15, investment throughout 2025, leading to a projected group adjusted EBITDA of £50m for the second half of the year. The financial implications of this investment approach are confined to FY25, with FY26 adjustments pertaining only to Claremont. "THG agrees to sell Claremont Ingredients for $137m" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Leader Live
6 days ago
- Business
- Leader Live
Myprotein owner THG cuts profit outlook after deal to sell flavourings brand
Manchester-based online retail group THG said it had sold the firm, which makes flavourings for sports nutrition products, to Nactarome Group. 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'.
South Wales Guardian
6 days ago
- Business
- South Wales Guardian
Myprotein owner THG cuts profit outlook after deal to sell flavourings brand
Manchester-based online retail group THG said it had sold the firm, which makes flavourings for sports nutrition products, to Nactarome Group. 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'.
North Wales Chronicle
6 days ago
- Business
- North Wales Chronicle
Myprotein owner THG cuts profit outlook after deal to sell flavourings brand
Manchester-based online retail group THG said it had sold the firm, which makes flavourings for sports nutrition products, to Nactarome Group. 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'.
Rhyl Journal
6 days ago
- Business
- Rhyl Journal
Myprotein owner THG cuts profit outlook after deal to sell flavourings brand
Manchester-based online retail group THG said it had sold the firm, which makes flavourings for sports nutrition products, to Nactarome Group. 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'.
