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THG needs a new product director

MyProtein doesn't have any pricing power, because their products are just average.

Products are ok, but whenever prices for ingredients rise, they aren't capable of forwarding these prices to customers.

Where are the people who called me a paid deramper when i predicted poor THG Nutrition results because of high whey input prices?

I forgot who that clown was

Why does everyone on this board think that the results are good/decent?

Beauty sales -1,3% (+1,9% in Q42023)

Nutrition sales -12,7% (-6% in Q42023)

-2,5% in total for the whole remaining Group in FY2024 compared to FY2023

Do i think that THG is undervalued? YES, but you also have to admit that THG is a decreasing business.

There is no guarantee that THG Nutrition will have a comback.

MM told us at the last conference call already that the nutrition business is accelerating...and as you can see on todays results, it didn't turn out that way.

Add:

Even if THG Beauty improves their margin, they cannot make it up

" EBITDA margins improve from 7.3% to a conservative 10%"

This is very unlikely. Just compare Whey prices back then with today / last year.

Way higher input costs. So i'm expecting lower margin of THG Nutrition compared to 2023

People who still compare Ingenuity to Ocado don’t know what they invested in LOL

Very interesting presentation. Thank you for sharing it here.

Ian McDonald said in the Q&A that they are looking for an already cash generative business. He also especially ruled out cash burning tech businesses.

So if that is true, Ingenuity is not on their target list.

A stake in Nutrition or Beauty would be possible tho. He mentioned the good network of FMCG companies of Sir Terry Leahy.

Nutritions revenue + profit will be lower than last year, don't forget this in your calculation about dividens.

What value do you see in THG Beauty after Ingenuity demerger?

THG Beauty is basically a normal online beauty retailer.

Other beauty retailers could use Ingenuitys services too, and then there would be no competetive advantage anymore (let's assume there is a competetive advantage right now because of Ingenuity) ?

The revenue of THG Beautys own brands and THG Labs is so low and didn't show any high growth rates in the past, or it wasn't mentioned at least.

What's your vision with THG Beauty? Just a general growing beauty market?

Yeah, another huge "one-off expenditure" for all the legal work incoming in the next report.

Can someone enlighten me about the Selkirk thing? I only check this board occasionly.

So the speculation is that Selkirk will take over THG and screw MM Ingenuity steal?

Yup, agreed.

Think something fundamental is wrong with it.

I personally used to buy Myprotein because of the price. But nowadays there are so many budget supplement brands out there that i just buy whereever i find a good deal.

MP customers are very price sensitive and not very loyal.

All demerger stuff aside, THG Nutrition numbers were disappointing again.

I listened to the investor call and MM explained it with more discounts to get rid of the products with old packaging.

If Nutrition keeps struggling there won't be much FCF left for dividens (for FY2024 at least).

Thank you!

Just found this in the H1 report:

On 24th June 2024, the Group announced a strategic partnership with the Frasers Group. As part of this arrangement, THG agreed to sell its portfolio of luxury goods websites, including Coggles, to the Frasers Group. The sale completed 11th September 2024, with the results presented as discontinued categories. Associated assets have been impaired to realisable value and shown within adjusted items as at H1 2024. The combined discontinued categories contributed £22.9m (H1 2023: £58.9m) of revenue and an adjusted EBITDA loss of £3.5m (H1 2023: loss of £4.4m).

So THG got 22,9m + the Fraser partnership for THG Luxury assets (Coggles, AllSole, etc), correct?

How much revenue did this category made again?

MM said in the Q&A that all current shareholders will be able to continue on the Ingenuity journey, didn’t he?

So that means that Ingenuity won’t be taken off private?

@sj74

Wow, no words for that. Simply stupid if u don’t understand the difference.

THG might be 7-8x the market cap of warpaint at some point, but there’s no way it will be valued with the same multiples as Warpaint

Lookfantastic or Cult Beauty cannot be compared to Warpaint.

Warpaint only sell their own brands.

LF and CB are retailers. Most of THG Beauty’s revenue is as retailer selling 3rd party brands. We own some own brands, but the revenue is only 10% of THG Beauty’s revenue.

So you can’t use the same multiples on THG Beauty and Warpaint.

Unfortunately THG doesn’t provide information about the growth of their own beauty brands.

So, i just watched the webcast.

MyProtein / Nutrition

I don't know if i agree with the statement of MM, that a rebrand should be done when the business is going well.

Normally rebrands happen when it's not going well and you want to reposition your brand, right?

The rebrand might be physically more appealing to girls / moms, but not to their existing core customer - the gym bud.

And to be honest, i don't think that taste is a strength of MyProtein - and taste is really important for the female audience.

For the gym bud it's not that important.

Also once more we've seen that MyProtein as a brand doesn't have the pricing power to forward increasing raw material (mainly whey) prices to their customers.

Let's see if nutrition returns to sales growth in Q3 as MM predicted.

Who watched the webcast?

Were any details about the Frasers / Coggles deal revealed?