Online retail firm THG has cheered record customer demand for its protein arm despite “unprecedented” whey inflation.
The company, which owns the Myprotein brand, said strong growth in the nutrition business helped to offset “highly elevated” whey costs, alongside changes to pricing.
Boss Matthew Moulding said: “The group continues to deliver strong year-on-year adjusted Ebitda (earnings before interest, tax, depreciation and amortisation) growth, notwithstanding the broader macroeconomic backdrop, including unprecedented whey commodity inflation levels.”
Whey protein, which was originally a by-product in cheesemaking, is popular for use in food in order to help build or maintain muscle mass.
But growing demand and limited supply has led to an acceleration in whey protein costs in recent years.
Last year, THG said “significantly higher” whey prices dragged on its profits.
On Wednesday, the company held firm on its financial guidance for the year despite high whey costs.
The company, which also owns the Cult Beauty and LookFantastic brands, told shareholders that revenues grew by 6.5% over the six months to May, compared with a year earlier.
Meanwhile, adjusted earnings are up by around 36% year-on-year to £94 million for the period.
The group said it has benefited from strong demand for skincare in its beauty operation.
Mr Moulding added: “We are on track with our growth and margin expansion strategy across the group.
“By prioritising home markets and trending categories in THG Beauty, we continue to drive high-quality growth across an expanding customer base.
“In THG Nutrition, Myprotein is reaching more consumers than ever.”
