THG's nutrition division surges as sales return to growth
- THG's nutrition division has been experiencing the fastest growth in over three years.
- The company now has Myprotein products in over 34,000 stores worldwide, with expectations to reach 40,000 by year-end.
- Shares in THG soared over 15% in response to the announcement of positive sales growth.
In the United Kingdom, THG, operating both Cult Beauty and Myprotein, has reported an encouraging return to sales growth in recent months, marking a significant turnaround for the company. The Manchester-based firm revealed that its nutrition business has been expanding rapidly, with growth expected between 5% and 7% for the second quarter of 2025. Myprotein's products are now available in over 34,000 retail locations worldwide, including significant markets such as the United States and Japan, and the company anticipates reaching 40,000 stores by year-end. This robust expansion has been supported by impressive new partnerships, particularly with major retailers like Walmart and CVS in the US as well as a notable increase in availability in GNC nutrition stores. Additionally, THG has secured listings in thousands of 7-Eleven stores across Taiwan and Singapore, along with a presence in Dutch health chain Kruidvat. Despite the ongoing challenge of rising costs associated with raw materials necessary for their products, recent trends suggest some easing in inflation impacting the prices of milk and whey, which are critical components in their protein offerings. Conversely, THG's beauty division has not fared as well, facing a projected decline in sales of approximately 2% to 3% during the same quarter. This forecast comes after a significant drop in sales by 10% in the previous quarter, underscoring the challenges within the beauty sector. Notably, while the beauty division saw growth in the UK, specific strategic decisions to withdraw from less profitable markets in Asia and Europe have curtailed overall performance in beauty products. The mixed fortunes of THG's segments have influenced the company's stock performance, with shares rising by over 15% following the announcement of the positive sales growth in the nutrition sector. The optimism surrounding the nutrition division illustrates a potential recovery path for THG, setting a hopeful outlook amid current market challenges.