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The health and beauty firm behind the Myprotein brand has said its profits will fall by \u00a313m because of the high price of key ingredient whey.<\/p>\n
Once regarded as a by-product in cheese-making, whey protein has become increasingly popular for use in smoothies, food and for people using injectable weight loss medications to prevent muscle wastage.<\/p>\n
THG, which also owns online cosmetics and skincare retailer Cult Beauty, blamed “substantially higher” prices for whey which reached a record over the past year and have stayed there.<\/p>\n
The company said that instead of passing on higher prices to customers, it would absorb the cost itself to grow market share.<\/p>\n<\/div>\n
With consumers becoming more health conscious in recent years, demand for protein in food and drinks has risen.<\/p>\n
“You walk into a supermarket and everything is protein enhanced,” said John Stevenson, retail analyst at Peel Hunt. “You can buy protein-enhanced puddings and yogurts and drinks.”<\/p>\n
Weight-loss or GLP-1 drugs, such as Wegovy and Mounjaro, have also played a part in the rise, added Meredith Smith, consumer futures lead at market research firm Kantar<\/p>\n
“The collective consumer consciousness is ‘relearning’ how to fuel their bodies and minds, and high protein has been a major priority reinforced with GLP-1 users,” she said.<\/p>\n
Myprotein, which sells a branded range of ready meals in Iceland and protein shakes with Muller, makes up a third of THG’s revenues.<\/p>\n
Underlying profit for the first six months of its financial year will fall to \u00a324m from \u00a337.1m in same period last year, the company said.<\/p>\n
Sales from its nutrition business, however, are expected to grow by between 10% and 12% in the second half of the financial year.<\/p>\n
THG said Myprotein would “limit price its increases” over that period to increase its share of the market.<\/p>\n<\/div>\n