RE: Myprotein Exansion since December - Just what we know13 Sep 2023 10:33
That's as comprehensive an update as you can get on Myprotein and should cover the half yearly and beyond.
Just incidentally Kevins Natural Foods was taken over by mars on a 5.7X Revenue Multiple and here is what Kelso had to say on the matter
"In particular, we believe that THG's Nutrition division with its main brand of MyProtein should be valued as a global consumer brand, given near $1bn sales, double-digit EBITDA margins and its increased product innovation in the current year. This division alone continues, in our view, to be worth more than the market capitalisation of THG. Kelso's RNS on 21 April 20232 highlighted this value and the names of some of the global brands that are increasingly shifting the balance of their product portfolios away from sugar and chocolate products to more healthy and nutritional ones. This is made clear when the 131 global consumer product companies, with an average market capitalisation of £85.3bn, that we believe could potentially have strategic interest in this division, trade on an average EV/Sales of 4.4x. THG remains valued on an EV/Sales of c.0.5x.
Centred around the potential value of MyProtein, Kelso has been pleased to see two further industry developments in the last few weeks. First of all, on 5 July 2023, Mars Wrigley ("Mars") announced the acquisition of Kevin's Natural Foods for $800m, a business founded in 2019. Kevin's Natural Foods reportedly generated approximately $140m of revenue in 2022 up from approximately $100m in 2021, which implies a 5.7x historical sales multiple. This sales multiple is not dissimilar to other recent sales multiples on acquisitions in the nutrition sector. Secondly, we note the announcement on 22 June 2023 by Tesco reaffirming its commitment to support healthy affordable diets. Tesco announced in this statement its target of boosting sales of healthy products to 65% as a proportion of total sales by 2025. Kelso highlighted in its RNS on 21 April 20232 date about the global investment institutions demanding that food brands declare what % of their product portfolio are 'healthy'. Kelso believes that the combination of retailers such as Tesco targeting healthier products coupled with institutional investors equally wanting to understand the healthiness of the product portfolios of the global food brands better should leave THG's leading nutrition brand MyProtein in a strategically advantageous position as it further expands globally."
https://www.lse.co.uk/rns/KLSO/investment-in-thg-plc-update-bk29gfqp1azz3on.html
That in my books makes THG Nutrition at £675M revenue for 2022 an over £3 Billion business in it's own right.
Doubling of the frozen meal range at Iceland and what else is happening and to come says the birth of an FMCG.
GL whatever way you position yourself.
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