By Joe Hoppe
THG said it agreed to sell its Claremont Ingredients business, and that it expects to report a decline in first-half earnings after high whey prices hurt the bottom line at its nutrition unit.
The U.K. e-commerce company said it would sell Claremont for 103 million pounds ($137 million) in cash to Nactarome Group, majority owned by TA Associates Management. THG bought Claremont for 52 million pounds in late 2020.
Claremont's revenue in 2024 was around 14 million pounds, and the sale is expected to reduce 2025 and 2026 earnings before interest, taxes, depreciation and amortization by around 5 million pounds and 10 million pounds, respectively. Proceeds from the sale will be used to reduce net leverage and borrowing costs, the company said.
THG said it expects to report an adjusted Ebitda of around 24 million pounds in its first-half results in September, down from 37.1 million pounds a year prior. The decline primarily reflects substantially higher on-year whey pricing in its nutrition unit, which includes protein supplements.
Whey prices have held stable at record highs over the last year as strong global demand matches new supply capacity.
Given whey's price stability, rising nutrition consumer prices and its business model, THG expects second-half revenue growth for its nutrition division of between 10% and 12%. It expects a group adjusted Ebitda of around 50 million pounds for the second half.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
August 06, 2025 02:54 ET (06:54 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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