THG nutrition sales shrink as MyProtein firm shoulders high whey price
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THG has posted lower annual sales following 'well-documented challenges' affecting its nutrition business in Asia. The e-commerce retailer behind supplement producer MyProtein revealed its revenue shrank by 3.1 per cent at constant currency rates to £1.9billion last year.
Sales of nutrition brands declined by 8.7 per cent to £579.6million, with the company blaming adverse currency fluctuations for contributing to difficult trading conditions across Asia. THG Nutrition also faced a 50 per cent jump in the price of whey over the last six months, according to broker Peel Hunt, which downgraded its forecasts for the division on Thursday.
Manchester-based THG said it was a 'transitional year' for the nutrition division, which was undertaking greater discounting activity to clear old stock amid the rebranding of MyProtein. It observed 'improving underlying trends' within the segment during the second half of 2024, especially in Britain, where licensing and retail partnerships are bolstering offline sales growth.
THG said: 'The UK had a stronger performance during Q4 (vs Q3), although well-documented challenges in the Asia market relating to FX movements continued to weigh on trading performance in the region. Results: E-commerce retailer THG, home to skincare brand ESPA, has posted lower annual sales following 'well-documented challenges' affecting its nutrition business in Asia.
