Online retail firm THG has reported record customer demand for its protein division, despite facing “unprecedented” whey commodity inflation. The company, which owns the Myprotein brand, said strong growth in the nutrition business helped offset “highly elevated” whey costs, alongside adjustments to pricing strategies.
Financial Performance and Guidance
On Wednesday, THG held firm on its financial guidance for the year despite high whey costs. The company told shareholders that revenues grew by 6.5% over the six months to May, compared with the same period a year earlier. Meanwhile, adjusted earnings (EBITDA) rose by approximately 36% year-on-year to £94 million for the period.
CEO Comments on Whey Inflation
Boss Matthew Moulding said: “The group continues to deliver strong year-on-year adjusted EBITDA growth, notwithstanding the broader macroeconomic backdrop, including unprecedented whey commodity inflation levels.” Whey protein, originally a by-product in cheesemaking, is popular for use in food to help build or maintain muscle mass. However, growing demand and limited supply have led to an acceleration in whey protein costs in recent years. Last year, THG said “significantly higher” whey prices dragged on its profits.
Beauty Segment Growth
The group also benefited from strong demand for skincare in its beauty operation, which includes brands like Cult Beauty and LookFantastic. Mr Moulding added: “We are on track with our growth and margin expansion strategy across the group. By prioritising home markets and trending categories in THG Beauty, we continue to drive high-quality growth across an expanding customer base. In THG Nutrition, Myprotein is reaching more consumers than ever.”
