THG just placed a profit warning as its underlying profit for the first half of the financial year plunges. They predict profits will plummet to £24 million, down from £37.1 million over the same period last year. This decline is the result of increasing whey protein prices, which have been negatively affecting the company’s margins.
THG is recovering from that profit dent. They’re counting on their nutrition business to carry them, with sales in that category expected to rise by 10%-12% in the second half of their financial year. The nutrition division is crucial to THG’s overall revenues, with Myprotein, a key brand under its umbrella, accounting for one-third of the company’s total income. Myprotein recently released a new Iceland-exclusive branded range of ready meals. They’ve partnered with Muller to provide high-quality protein shakes.
The shifting consumer landscape is just one side of the equation as far as broader market dynamics go. The need for protein enrichment in food and beverages has dramatically increased with consumers focusing more on their health. The explosion in popularity of new weight-loss drugs such as Wegovy and Mounjaro has supercharged this trend. Consequently, more people are choosing to eat food that is more protein-rich.
“The collective consumer consciousness is ‘relearning’ how to fuel their bodies and minds, and high protein has been a major priority reinforced with GLP-1 users.” – Meredith Smith, Consumer Futures Lead at Kantar
Meanwhile, Novo Nordisk, the pharma firm behind the phenom GLP-1s, has recently cut its full-year growth forecast. The company reported that sales growth for its Ozempic and Wegovy brands slowed to 8% in the first half of the year, a significant drop from the 21% growth experienced during the same period in 2024. These challenges were identified by Lars Fruergaard Jørgensen, Novo Nordisk’s chief executive, as examples of a deepening market malaise.
Retail analyst John Stevenson highlighted the prevalent trend within supermarkets, stating that “you walk into a supermarket and everything is protein enhanced.” Or how entrenched protein-heavy products have become in consumer diets. They happen to fit hand in glove with rising health awareness and changing dietary habits.
As THG navigates these challenges and opportunities in the nutrition sector, the focus remains on leveraging Myprotein’s strong market presence while adapting to fluctuating ingredient costs and evolving consumer preferences.