THG Reduces Profit Forecast Due to High Whey Prices

• THG reduces its profit forecast due to the increase in whey prices.
• The company sells the Claremont brand to mitigate losses.
• Myprotein remains the main revenue driver for THG.

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THG, which owns the Myprotein brand, announced a reduction in profit by £13 million due to high whey prices, which have reached record levels in the last year. Whey, previously considered a by-product of cheese production, is now widely used in sports nutrition and health products.

THG, also known as the online retailer of cosmetics Cult Beauty, decided not to raise prices for consumers, but rather to cut spending to increase its market share. Demand for protein products is rising, as consumers have become more aware of their health.

Myprotein accounts for a significant portion of THG's revenues. It is expected that the underlying profit for the first half of the year will fall to £24 million from £37.1 million for the same period last year. However, sales in the nutrition segment are expected to grow by 10-12% in the second half of the financial year.

THG also announced sales of the Claremont brand for £103 million, which will help reduce the company's losses. Following this, a reduction in annual profit of £5 million is expected this year and £10 million in the next. THG plans to limit price increases in the second half of 2025 to retain clients.

Tags: Economy