RE: Hold6 Aug 2025 11:04
It is a profit warning
THG warned on profits on Wednesday as it announced the sale of its Claremont Ingredients business to Nactarome Group for around £103m in cash.
Flavour specialist Nactarome is majority-owned by TA Associates. THG said the sale marks a significant return on investment for the group, which paid £52m for Claremont in 2020.
Cash disposal proceeds will contribute towards reducing net leverage and borrowing costs in line with the company's capital allocation strategy targeting a neutral net cash/net debt position.
THG also said that following the disposal, group FY 2025 and FY 2026 earnings before interest, tax, depreciation and amortisation are expected to be reduced by around £5m and £10m respectively.
Ahead of its interim results in September, the group said it expects first-half adjusted EBITDA of around £24m, down from £37.1m in the same period a year earlier, mainly due to "substantially higher" whey pricing year-on-year in Nutrition.