Latest news with #THG
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
Yahoo
6 days ago
- Business
- Yahoo
THG strikes Myprotein licensing deal in South Korea
Myprotein owner THG has entered a licensing partnership with SG Safety Corp. to expand distribution of the sports nutrition brand in South Korea. The agreement with SG Safety, part of the CJ Group local conglomerate, will see the launch of the Myprotein brand into offline channels in South Korea for the first time, London-listed THG said in a filing. CJ Group will also manufacture Myprotein branded products locally under license, including bars, snacks, powders, ready-to-drink products, and supplements. THG said it will continue to produce its core protein powders, with SG Safety acting as distributor in the South Korean market. The partnership marks the company's first licensing agreement in South Korea, enabling it to deepen its presence in a 'capital-light manner', the filing read. Set for a consumer launch in the fourth quarter, the agreement builds on Myprotein's online presence, where South Korea ranks among its 'top five' global markets. The filing did not reveal the offline marketing channels. Citing industry data, THG noted the South Korean sports nutrition market was valued at $1.88bn in 2023 and is projected to reach $3.05bn by 2030, a compound annual growth rate (CAGR) of 7.2%. Neil Mistry, CEO of THG Nutrition, said: 'This collaboration will strengthen our presence in one of Myprotein's most important markets, while also creating new opportunities to grow across established and emerging product categories, and to extend our reach across both offline and online channels.' The agreement complements Myprotein's existing partnerships in Asia, such as with Japan's Itochu, the company said. Jung-Hyun Sung, the CEO of SG Safety, said: "We're excited to be partnering with THG Plc to expand access to Myprotein across South Korea. "The demand for trusted, high-quality nutrition products continues to grow, and this agreement allows us to meet that demand through local expertise in manufacturing and distribution, supported by the strength of the Myprotein brand." THG operates two primary consumer-facing businesses: THG Nutrition, which includes Myprotein, and THG Beauty. In 2024, the company spun-off its tech platform, THG Ingenuity, into a standalone business. In April, THG's board rejected an 'unsolicited" and "largely unfunded" takeover proposal for Myprotein from Selkirk to the tune of as much as £600m ($798.7m). The board considered the offer to be "undervalued". In a first-quarter trading update in April, THG reported continuing revenue of £371.4m, down 6.1% in constant currency terms. THG Nutrition posted revenue growth of 0.1%. The company maintained its full-year 2025 revenue growth guidance of 'mid-single digits'. Meanwhile, in filing today (6 August), THG announced the sale of its Claremont Ingredients business to Nactarome Group, majority-owned by TA Associates, for £103m in cash. The company had acquired the flavour manufacturing business for £52m in 2020. Additionally, THG reported an estimated first-half adjusted EBITDA of £24m, down from £37.1m in H1 2024, attributing the decline to higher whey pricing. THG Nutrition recorded 'double-digit' revenue growth across June and July, with the company projecting second-half Nutrition revenue growth of between 10% and 12%. THG also projected a group adjusted EBITDA of approximately £50m for H2 2025. "THG strikes Myprotein licensing deal in South Korea" was originally created and published by Just Drinks, 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.
BBC News
7 days ago
- Business
- BBC News
THG says high whey protein prices will a chunk out of profits
The health and beauty firm behind the Myprotein brand has said its profits will fall by £13m because of the high price of key ingredient regarded as a by-product in cheese-making, whey protein has become increasingly popular for use in smoothies, food and for people using injectable weight loss medications to prevent muscle Hut Group (THG), which also owns online cosmetics and skincare retailer Cult Beauty, blamed "substantially higher" prices for whey which reached a record over the past year and have stayed company said that instead of passing on higher prices to customers, it would absorb the cost itself to grow market share. With consumers becoming more health conscious in recent years, demand for protein in food and drinks has risen."You walk into a supermarket and everything is protein enhanced," said John Stevenson, retail analyst at Peel Hunt. "You can buy protein-enhanced puddings and yogurts and drinks."Weight-loss or GLP-1 drugs, such as Wegovy and Mounjaro, have also played a part in the rise, added Meredith Smith, consumer futures lead at market research firm Kantar"The collective consumer consciousness is 'relearning' how to fuel their bodies and minds, and high protein has been a major priority reinforced with GLP-1 users," she which sells a branded range of ready meals in Iceland and protein shakes with Muller, makes up a third of THG's profit for the first six months of its financial year will fall to £24m from £37.1m in same period last year, the company from its nutrition business, however, are expected to grow by between 10% and 12% in the second half of the financial said Myprotein would "limit price its increases" over that period to increase its share of the market.
Leader Live
7 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
7 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'.
