THG sells nutrition supplier to streamline operations as beauty and nutrition deliver growth

THG has reported a positive start to the second half of the year for its beauty division, as it continues to streamline its operations with the sale of its flavourings brand, Claremont.

The owner of Cult Beauty and Lookfantastic said beauty is seeing an improved revenue growth rate.

Meanwhile, THG Nutrition delivered double-digit revenue growth across June and July. The division is now expected to achieve revenue growth between 10% and 12% in the second half of the year.

It comes as Manchester-based firm sells Claremont, which makes flavourings for sports nutrition products, to Nactarome Group for £103 million

The move aligns with plans to simplify the group and generate cash to reduce debts on its balance sheets. THG acquired Claremont for £52 million five years ago, now selling it for double the price.

Following the transaction, THG expects EBITDA to be reduced by £5 million in FY25 and £10 million in FY26. This follows the retail group's adjusted EBITDA of £24 million in the first half - a 35% decline - which it attributed to "substantially higher" whey prices affecting its Nutrition division.

Matthew Moulding, CEO at THG, said: "Claremont has been a huge success, building Myprotein’s global licensing franchise from a standing start to partnering with 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.

"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."