RE: Over the weekend28 Jun 2025 18:10
Matt and the board have chosen a certain strategy were I think some of the division comes in between institutions and private investors, both have different time horizons which may cause problems around expectations.
Two of the most contentious were/are the decision to re-brand with a view to growing offline moving away from whey dependant products. At the time it was deeply unpopular due to the squeeze on margins whilst clearing out old SKU's pushing nutrition into reverse, that's now behind us and proving v successful to boot.
- - From a largely standing start 3 years ago, Nutrition's offline strategy is gaining significant traction. Myprotein products are now available in over 34,000 doors, principally within the UK, US and Japan. New retail listings secured in Europe in H1 2025 include 900 stores for the Dutch health and wellness specialist Kruidvat. Asia momentum continues to build with listings in 7-Eleven (>3,000 stores in Taiwan and Singapore), Costco (Taiwan) and Decathlon (Vietnam market entry through store-in-store model).
· Offline expansion across the US has been particularly pleasing with an almost 5-fold increase in doors expected during the year to c.8,400 (2024: 1,500). Notable US wins include listings in Walmart, CVS and expansion into additional GNC stores- -
Second area is subsidising or absorbing through margin reduction prices on whey based products, the hope here is that they retain or increase their customer base which will pay dividends when the commodity prices recede, several posts suggest this hasn't happened yet but H2 going into 2026 is when both Glanbia and THG have flagged addition supply coming on-stream.
On the subject of whey powder, there is some correlation to the actual concentrate used but this is dependant on companies like Hilmar processing larger quantities, unfortunately we don't have much visibility on this other than what we are told.
My view is it will be 2026 before both divisions really start popping, that view is based on lower commodity prices together with interest rates being at least 0.75% down both sides of the pond.
Scrolling back to point one about institutions having a longer time frame, this may work in out favour as six months is very short from an investing period - many funds often quote minimum of 5 years in order to see past short term economic cycles.
..just my pennies worth
sj74, closed period until TU ?
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