THG, the owner of the Myprotein brand, is seeing renewed investor interest amid a growing demand for protein-based nutrition products. The company, which was once hailed as a major e-commerce innovator, is now refocusing on its retail origins, particularly within the nutrition and beauty sectors.

Since its London initial public offering six years ago, THG’s journey has been marked by controversy and volatility. Founder Matthew Moulding retained significant control through governance structures that only shifted in 2023 when he relinquished his takeover veto power. Meanwhile, the company’s shares have plummeted about 90 percent from their peak, largely due to doubts about the performance of its e-commerce platform Ingenuity, which was initially seen as a key growth driver but failed to meet sales expectations.

Despite this, THG’s stock has rebounded around 25 percent in recent days after the company reported it is on course to achieve its first positive free cash flow year since going public. Additionally, it slightly raised its full-year EBITDA forecast, with analysts revising their expectations to roughly £103-105 million, an increase of about 4 percent compared to previous predictions.

THG is now concentrating on two main business areas. The first is the beauty segment, which includes premium brand websites Lookfantastic and Cult Beauty. The more significant growth potential, however, appears to lie in its nutrition division, driven by the widespread consumer trend toward protein-enriched foods and beverages.

The sector currently faces challenges from rising costs of key ingredients such as whey protein, which has pressured profit margins. This has compelled THG and its competitors to explore alternative protein sources and reformulate products. Peel Hunt analysts estimate that THG’s overall EBITDA margin could reach 7 percent in 2026, though this figure might improve to around 13 percent under more stable market conditions.

Looking forward, THG still faces several hurdles. The protein supplement market risks becoming commoditized as new entrants attract customers who may lack strong brand loyalty traditionally seen in gym and bodybuilding communities. However, Myprotein benefits from established partnerships with brands like Müller, Krispy Kreme, and Mars, which could help maintain its market position.

Investor concerns are also amplified by Moulding’s unconventional approach, which has included public criticisms of hedge funds and short sellers. Furthermore, the company has historically missed analyst profit forecasts for four consecutive years, even though the gap has recently narrowed.

While THG’s turnaround efforts show promising signs, the company must continue to demonstrate sustainable growth to convince investors that it can overcome its previous setbacks.