Whey Finance

THG rejects many ‘unacceptable’ takeover offers

THG reiterated its 2022 sales target, but warned earnings growth would be flat due to soaring commodity prices. Photo: Pavlo Gonchar/SOPA/LightRocket via Getty Images

E-commerce group THG (THG.L) revealed it rejected several “unacceptable” takeover approaches as it warned of soaring costs.

The company, which owns brands including MyProtein and Cult Beauty, said on Thursday it had received “indicative proposals from many parties in recent weeks”, but the board felt the offers did not reflect fair value. the company.

“The board has concluded that every proposal to date is unacceptable, not reflecting the fair value of the group, and confirms that THG is not currently receiving any approach,” said its chief executive and founder Matthew Moulding.

“We continue to focus on delivering our exciting growth strategy across a number of large global sectors and prepare to move into the premium segment of the LSE when the time is right.”

He confirmed that there were no more ongoing conversations.

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The shares rose 8% in early trading before falling back to 3.5% higher.

THG, formerly known as The Hut Group, has faced growing speculation that it could be taken private after its value plummeted following its 2020 IPO.

He came as the company reiterated its 2022 sales target, but warned profit growth would be flat due to soaring raw material costs.

Revenue rose 16.3% to £520.2 million ($680 million) for the first quarter of 2022, but he now expects sales growth of between 22% and 25% for this fiscal year, with a potential loss of around 1% of Ukraine’s revenue. war.

It again highlighted particular increases in the cost of whey protein. In January, he issued a profit warning due to soaring prices for whey protein used in protein shakes, adding that the start of 2022 was expected to be tougher than last year’s lockdowns.

The company will seek to raise prices below cost inflation and use the efficiency of its operations to absorb some price pressures, he said.

Molding added: “In our first full year as a public company, 2021 has seen us grow our revenues and expand our business model, well ahead of the targets set at the IPO.

“I would like to thank all of THG’s colleagues for their dedication and hard work in helping us achieve such a strong performance for the year. We remain confident in delivering on our strategic growth plans for the coming year and beyond, with the full support of the Board of Directors and our new President.

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