THG, which owns Lookfantastic and Cult Beauty, is exploring plans to list MyProtein, its nutritional arm, in the US.
THG is exploring plans to list MyProtein in the US as pressure mounts from investors for the separation of the nutritional business, The Telegraph has reported.
This comes after shareholder Kelso Group, which increased its stake in the business to 8 million shares earlier this year, continues to advocate its separation from the business, thanks to MyProtein’S value as a global consumer brand.
In a statement, Kelso Group said: “We believe that THG’s Nutrition division with its main brand of MyProtein should be valued as a global consumer brand, given its near $1bn sales, double-digit EBITDA margins and increased product innovation in the current year.
“This division alone continues, in our view, to be worth more than the market capitalisation of THG.”
The possible listing is a surprise given THG’s challenges since it listed on the London Stock Exchange in 2020. Share prices for the health and beauty pure play retailer have dropped by over 90%, with its valuation decreasing from £6.5bn in September 2020 to £850m at the time of writing.
In its latest interim half-year results, THG’s operating losses deepened due to a one-off, non-cash charge of £26.2m related to the sale of its loss-making OnDemand business. While the retailer said this has improved its overall financial guidance, the disposal took its operating losses to £99.5m, from losses of £89.2m for the same period in 2022.
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