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Myprotein owner THG has agreed to sell its flavourings brand Claremont for £103 million whilst cutting its profit outlook for the year. The Manchester-based online retail group 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.
Earnings hit despite sale success
However, following the sale, THG expects annual earnings before interest, tax and other costs to be reduced by around £5 million this year and £10 million next year. The company 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.
Strategy to retain customers
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".
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
