MyProtein owner, THG, has warned that its profits for the year will fall below guidance following the sale of its nutrition product supplier.

The firm said it had agreed to sell its Claremont Ingredients business to flavourings manufacturer Nactarome Group for £103m.

The disposal of Claremont marks a significant return on investment after the group acquired the business in late 2020 for £52m to support its growth ambitions for MyProtein.

Following the transaction, THG said it expects its group FY25 EBITDA and FY26 EBITDA to be reduced by £5m and £10m respectively. It comes after the ecommerce giant delivered an adjusted EBITDA of £24m in its first half, down 35%, which it attributed to “substantially higher” whey pricing in its Nutrition arm.

Looking ahead, it reported that gross margins are in “solid growth”  in the second half of the year and that it expects to deliver a group adjusted EBITDA of £50m in H2.

THG chief executive Matthew Moulding 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.

“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.”

He added: “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.”

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