THG (LSE:THG) returned to revenue growth during the first half of the year, with group sales increasing by approximately 6.5% and adjusted EBITDA for the 12 months to May rising 36% to around £94 million. The improvement was supported by disciplined cost management, stable gross margins and stronger performances across the company’s core Beauty and Nutrition divisions.
Management reaffirmed its full-year outlook and highlighted the strongest first-half free cash flow performance since 2021, reflecting ongoing operational improvements and a greater focus on efficiency. The company also noted that its Term Loan B is currently trading above par value, which it believes demonstrates increasing confidence among lenders in the group’s financial position and long-term prospects.
THG Beauty continued to deliver strong growth, led by a near 10% increase in skincare sales and ongoing momentum at Lookfantastic. The platform is outperforming the wider UK prestige beauty market and has established itself as the leading multi-brand beauty retailer on TikTok Shop, helping to drive customer acquisition and brand engagement.
Within THG Nutrition, growth continued despite inflationary pressures affecting whey protein costs. Myprotein expanded further into adjacent health and wellness categories, increased volumes in its licensed ready-to-drink products and continued transitioning its Asian operations towards a higher-margin licensing model designed to improve profitability and scalability.
The company is also awaiting a decision regarding £78 million of retrospective VAT claims. Management believes the outcome could have significant implications not only for THG but also for the broader sports nutrition industry.
Looking ahead, THG remains focused on driving profitable growth through its global consumer brands, strengthening cash generation and leveraging its scale in digital commerce. Management believes the continued progress of its Beauty and Nutrition businesses provides a solid foundation for further operational and financial improvement.
More about THG
THG PLC is a Manchester-based global e-commerce company and brand owner operating primarily through its THG Beauty and THG Nutrition divisions. THG Beauty manages online platforms including Lookfantastic, Dermstore and Cult Beauty, offering access to more than 1,000 owned and third-party brands. THG Nutrition is led by the Myprotein brand and operates across sports nutrition, health and wellness categories, distributing products through online channels and a growing network of retail and licensing partners around the world.
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