THG has warned on profits for the first half of the year, at the same time as announcing it has divested one of its nutrition suppliers after receiving a “highly competitive offer”.
In a trading update on its first half performance, THG said adjusted EBITDA would be £24m, down from £37.1m in 2024, which reflected “substantially higher whey pricing year-on-year” for its nutrition arm.
The retailer said the key ingredient in many of its nutrition products has “remained stable at record highs during the last 12 months, with strong global demand matching new supply capacity”, which has pushed up prices.
The retail group said revenue performance would be in line with its AGM statement guidance.
THG said cash would be £278m following its refinancing in the first quarter with “substantially reduced gross debt”.
Net debt is expected to be £330m before the net proceeds of the sale of its nutrition supplier Claremont.
THG said it had sold the nutrition supplier business it purchased in 2020 for £103m, noting Claremont generated £14m in revenues in the 2024 financial year and.£7m in profits.
While the sale will reduce 2025 and 2026 EBITDA by £5m and £10m respectively, THG said the sale marks a “significant return on investment”.
THG chief executive Matthew Moulding 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.
“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.
“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.”
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