Latest news with #NactaromeGroup
Yahoo
2 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
Daily Mail
3 days ago
- Business
- Daily Mail
THG flogs ingredients business and 'limits' Myprotein price hikes
Matt Moulding's e-commerce retailer THG has agreed the sale of its Claremont ingredients business in a bid to slash debts and bolster its balance sheet. THG, which owns the Cult Beauty and Myprotein brands, told investors on Wednesday it would sell Claremont in a £103million cash deal to 'fast-growth international flavour specialist', Bristol-based Nactarome Group. It came as the group told shareholders it would 'limit' price hikes within its Myprotein nutrition business in efforts to boost market share, despite the impact record high whey prices have had on THG this year. THG has been working to simplify the business, having sold off its Ingenuity unit earlier this year, in efforts to reduce debt, bolster cash reserves and reduce borrowing costs. Claremont is a flavour manufacturing and development laboratory for sports nutrition, with specialisms in bakery and beverages. The business, which generated revenues of £14million last year, was acquired for £52million in late 2020 to accelerate Myprotein's global licensing range launch and aid new product development. This 'key relationship' between Myprotein and Claremont will be protected through both a long-term supply contract and the broader capabilities Nactarome, THG said. Chief executive and founder Moulding added: '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. 'After receiving a highly competitive offer, the timing was right to realise that value. The level of interest we received is a testament to the quality of the business.' The group had cash and available facilities of £278million as of 30 June, with net debts down £20million on the same time last year at £330million. THG spun off loss-making technology platform Ingenuity in January to simplify operations, revive shareholder value, and bolster its finances, after a bruising first four years as a London-listed company. Following the demerger, the group completed a debt refinancing deal up to 2029, conducted an equity raise, and entered the FTSE 250 Index. But the group has lost its FTSE 250 status and its shares are down by around 96 per cent from their value in January 2021 when they listed for the first time. THG returned to revenue growth in the second quarter, amid 'much improved' trading aided by the retailer's remaining nutrition and beauty divisions. It told investors in June its nutrition bricks and mortar offering is now 'gaining significant traction', THG said, with products available in new territories across the UK, UK, Europe and Asia. However, record high whey protein prices have weighed on the group, which saw first half adjusted earnings before nasties fall to £24million from £37.1million the prior year. But recent whey price 'stability', as well as rising nutrition consumer prices and 'Myprotein's structurally advantaged business model', helped drive double-digit nutrition revenue growth across June and July. THG told investors that to 'prioritise long-term market share gains and customer loyalty', its Myprotein unit 'will limit price increases' in the second half to enable 'further acceleration' of its global offline retail growth. It added: 'This opportunistic pricing approach is in line with prior discussions with shareholders and will underpin market share growth and operating leverage for the full financial year 2026.' But THG also told investors on Wednesday the sale of Claremont would reduced full-year adjusted earnings before nasties by £5million to £10million. Moulding added: '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.' THG shares jumped 6.3 per cent to 32.5p in early trading, but remain down roughly 28 per cent for 2025.
Yahoo
3 days ago
- Business
- Yahoo
Myprotein owner THG cuts profit outlook after deal to sell flavourings brand
Myprotein operator THG has agreed to sell its flavourings brand Claremont for £103 million as the business cut its profit outlook for the year. 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'.
The Independent
3 days ago
- Business
- The Independent
Myprotein owner THG cuts profit outlook after deal to sell flavourings brand
Myprotein operator THG has agreed to sell its flavourings brand Claremont for £103 million as the business cut its profit outlook for the year. 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'.
Reuters
4 days ago
- Business
- Reuters
UK's THG to sell flavouring maker Claremont for $137 million
Aug 6 (Reuters) - British e-commerce firm THG (THG.L), opens new tab on Wednesday said it would sell food and beverage flavouring manufacturer Claremont Ingredients for 103 million pounds ($137 million) to European flavour and colouring maker Nactarome Group.
