THG (LSE:THG) reported preliminary results for 2025 showing a return to growth on a constant-currency basis, with group revenue rising 2.3%. The company recorded a record second-half performance as momentum strengthened across both its Beauty and Nutrition divisions. Adjusted EBITDA reached £76.6 million, exceeding both company guidance and market expectations, while the group returned to profitability with net profit after tax of £54.1 million, supported in part by asset disposals including the sale of Claremont Ingredients.
During the year, THG completed the demerger of THG Ingenuity and refinanced its debt facilities through to 2029. These steps significantly simplified the group’s capital structure and reduced leverage, cutting gross debt by £162 million. The company ended the period with approximately £333 million in cash and available facilities.
Operationally, THG Nutrition continued to expand through an omnichannel strategy and broader distribution, now reaching more than 40,000 retail locations worldwide. Meanwhile, THG Beauty delivered its strongest quarterly performance since 2021, driven by strong online demand for Lookfantastic and growth in social commerce channels.
Management maintained its guidance for 2026, expecting mid-to-high single-digit growth in the Nutrition division alongside continued improvement in Beauty, supported by margin expansion and operational efficiency initiatives. Net debt is projected to decline further to between £110 million and £130 million, aided by anticipated free cash flow of £25 million to £50 million as well as VAT repayments. These developments are expected to strengthen cash generation and improve the company’s financial resilience.
The company’s outlook reflects a combination of financial challenges and strategic progress. While historically high leverage and recent losses have weighed on performance, improving technical indicators and corporate developments suggest growing momentum as the group advances its restructuring and growth strategy.
More about THG
THG is a FTSE 250 consumer-focused group operating primarily through its THG Beauty and THG Nutrition divisions. The company sells beauty products and sports nutrition through online platforms and retail channels under brands including Lookfantastic and Myprotein. THG has expanded its distribution through an omnichannel approach that includes a rapidly growing physical retail presence and licensing partnerships, with major markets in the UK, the United States and other international regions.
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