Whey to go! THG is back in profit

By the Editorial Team · Friday, October 16, 2026

THG reported profits exceeding expectations for the current financial year, driven by a 20% drop in whey protein prices and a 5.3% sales increase in its nutrition division, including Myprotein. This marks the first positive free cash flow since its 2020 IPO and has led analysts to upgrade earnings forecasts, boosting investor confidence and THG’s share price by 16.3%.

THG, the parent company of Myprotein, reported that its profits for the current financial year have exceeded market expectations, driven in part by a significant decrease in whey protein prices. The company, formerly known as The Hut Group, announced that its earnings before deductions are projected to reach £103 million, surpassing consensus forecasts of £101.7 million.

Matthew Moulding, THG’s founder and chief executive, highlighted that the company is set to achieve free cash flow between £25 million and £35 million, marking the first time this metric has been positive since THG’s initial public offering in London in 2020. This financial milestone reflects improved operational efficiency and favorable market conditions.

The notable correction in whey protein concentrate prices, which have fallen by approximately 20 percent since early September, contributed significantly to THG’s positive outlook. Prices had earlier surged due to supply shortages amid rising demand from gym enthusiasts. Additionally, the growing popularity of appetite-suppressing weight-loss drugs known as GLP-1s has further increased demand for protein-heavy diets, contributing to earlier price inflation. Data from DCA Market Intelligence indicated that whey powder prices in northwest Europe hit a record high of £1,456 per tonne in April, representing a more than 50 percent increase compared to the start of 2026.

THG noted that prices continued to decline recently as supply conditions improved and alternative products gained traction, allowing the company to secure more advantageous supply contracts for the fourth quarter compared to the previous quarter. For the three months ending September 30, THG’s sales rose 0.9 percent year-on-year to £408.8 million, with the nutrition division, which includes Myprotein, increasing sales by 5.3 percent to £152.4 million. Volumes of Myprotein-branded products grew by over one-third during this period.

Reflecting on the results, Moulding described the continued positive momentum through the third quarter as encouraging and underscored the importance of the anticipated positive cash flow as a significant achievement for the company.

Market analysts from Jefferies responded positively to the update, noting the rare upgrade to earnings estimates and expressing growing confidence in THG’s margin outlook for the current financial year and beyond. They attributed this optimism to a combination of strategic initiatives and the stabilizing whey protein prices. Jefferies also suggested that the ongoing decline in whey costs provides a strong case for improved profitability in THG’s nutrition segment in 2027.

Following the announcement, THG’s shares rose 4.5 pence, or 16.3 percent, closing at 32 pence.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.