REG - THG PLC - Disposal, H1 trading and Nutrition update

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RNS Number : 1267U  THG PLC  06 August 2025

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ANNOUNCEMENT.

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

 

FOR IMMEDIATE RELEASE

 

6 August 2025

 

THG PLC

 

Disposal of Claremont Ingredients for £103m

 

Update on H1 2025 financial performance

 

THG Nutrition strategic update

 

 

Pursuant to our strategy to simplify the Group and expedite progress towards a
net cash balance sheet, THG PLC ("THG" or the "Group") today announces that it
has agreed to divest Claremont Ingredients ("Claremont") from THG Nutrition
for c.£103m in cash. Following a highly competitive process, fast-growth
international flavour specialist, Nactarome Group, majority owned by TA
Associates, has agreed to acquire Claremont. This disposal marks a significant
return on investment, with THG having acquired Claremont for £52m 1  (#_ftn1)
in late 2020.

 

Claremont is a leading UK independent flavour manufacturing and development
laboratory for sports nutrition, alongside specialisms in bakery and
beverages. Claremont was acquired with the aim of accelerating Myprotein's
ambition to launch a global licensing range, in addition to new product
development.

 

Financially, Claremont has delivered a significant return, through cash
generation since acquisition plus disposal proceeds. Operationally, Claremont
step-changed Myprotein's flavour capabilities and this key relationship will
be protected through both a long-term supply contract and the broader,
international capabilities of Nactarome Group.

 

 

Financial impact

 

·    The cash disposal proceeds will contribute towards reducing net
leverage and borrowing costs in line with THG's capital allocation strategy
targeting a neutral net cash / net debt position.

 

·      Claremont's FY 2024 revenue was c.£14m 2  (#_ftn2) with limited
seasonality. Similarly, adjusted EBITDA contribution was c.£7m, with annual
capex of less than £1m.

 

·    Group FY 2025 EBITDA and FY 2026 EBITDA are anticipated to be reduced
by c.£5m and c.£10m respectively following the disposal.

 

 

H1 2025 financial highlights

 

·    The Group's interim results will be published in September 2025, with
revenue performance in line with AGM statement guidance.

 

·     H1 2025 adjusted EBITDA of c.£24m 3  (#_ftn3) (H1 2024: £37.1m),
primarily reflecting substantially higher whey pricing YoY in Nutrition. Whey
commodity prices have remained stable at record highs during the last 12
months, with strong global demand matching new supply capacity, leading to
market wide nutrition consumer price increases.

 

·     Cash and available facilities of c.£278m 4  (#_ftn4) , following
the Q1 2025 refinancing which substantially reduced gross debt.

 

·     Net debt of c.£330m (H1 2024: £350m), before net proceeds from
the disposal of Claremont (proforma c.£230m). The second half of the year
remains the seasonally strong cash generative period.

 

 

Strategic update, H2 2025 and FY 2026

 

·     Given whey price stability, rising nutrition consumer prices and
Myprotein's structurally advantaged business model, THG Nutrition delivered
double-digit revenue growth across June and July combined. Between +10% and
+12% revenue growth is now expected in H2 for THG Nutrition.

 

·     Whilst H2 gross margins are in solid growth vs H1 2025, to
prioritise long-term market share gains and customer loyalty, Myprotein will
limit price increases in H2 2025, enabling further acceleration of its
installed base in global offline retail from c.34,000 doors today, towards a
target of 100,000.

 

·     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.

 

·     This customer-first strategic initiative will be supported by
investment of approximately £15m during 2025 and will result in a Group
adjusted EBITDA of c.£50m for H2. The financial impact of this investment
strategy is limited to FY 2025, with FY 2026 solely adjusting for Claremont.

 

·      H2 has also started well for THG Beauty, with an improved revenue
growth rate.

 

 

Matthew Moulding, CEO of THG commented:

 

"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."

 

 

 

For further information please contact:

 

 Investor enquiries:
 Kate Grimoldby, Director of Investor Relations and Strategic Projects  Investor.Relations@thg.com (mailto:Investor.Relations@thg.com)

 Media enquiries:
 Sodali & Co - Financial PR adviser                                     Tel: +44 (0) 20 7250 1446
 Victoria Palmer-Moore/ Russ Lynch / Sam Austrums                       thg@sodali.com (mailto:thg@sodali.com)

 THG PLC                                                                media-enquiries@thg.com (mailto:media-enquiries@thg.com)

ENDS

Notes to editors

THG PLC is a global e-commerce group headquartered in Manchester, UK,
operating through two leading consumer businesses: THG Beauty and THG
Nutrition.

THG Beauty operates prominent online platforms including Lookfantastic,
Dermstore and Cult Beauty, offering a valued route to market for over 1,300
third-party brands, alongside a specialist portfolio of owned brands.

THG Nutrition, led by Myprotein, the world's largest online sports nutrition
brand, spans multiple health and wellness categories, delivering its products
both directly to consumers and through strategic offline partnerships
worldwide.

 1  (#_ftnref1) Excluding cash acquired.

 2  (#_ftnref2) Including £7m of intercompany sales.

 3  (#_ftnref3) Unaudited and subject to interim review by the Groups'
auditors.

 4  (#_ftnref4) Balance reflects c.£89m of cash leaving the Group as part of
the demerger, the refinancing activity that considerably reduced Group debt
(Term Loan A reduced by £74m and Term Loan B reduced by €155m) and
associated fees, the c.£89m net equity raise, alongside a typical working
capital outflow for the Group in the period.

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