High whey protein prices take chunk out of THG profits
Summary
The Hut Group (THG), which owns the Myprotein brand, announced a decrease in profits by £13 million due to high whey protein prices. Whey protein costs have risen because of increased demand and stayed high over the past year. THG chose not to pass these costs on to customers, aiming to expand their market share instead.Key Facts
- THG's profits will decrease by £13 million because of high whey protein prices.
- Whey was once a by-product of cheese-making but is now popular in foods and drinks.
- THG owns Myprotein, which generates a third of the company's revenue.
- Profits for the first half of the financial year dropped to £24 million from £37.1 million.
- Demand for protein has increased with more health-conscious consumers.
- THG is absorbing the cost of high whey prices to grow market share.
- THG expects sales from its nutrition business to grow by 10% to 12% in the year's second half.
- The rise in whey protein demand is partly due to weight-loss medications like GLP-1 drugs.
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