THG PLC (LSE:THG) has upgraded its full-year 2026 adjusted EBITDA guidance to £103 million, above market consensus, following third-quarter revenue growth and improved profitability across its continuing operations.
The Manchester-based e-commerce group reported third-quarter revenue of £408.8 million, representing a 1.5% increase year-on-year on a constant-currency continuing operations basis.
Revenue from the group’s core brands and markets, which account for approximately 87% of total sales, increased by 6.1% compared with the corresponding period last year.
THG also reported that adjusted EBITDA for the last twelve months increased by 50% year-on-year to £100.6 million.
The company now expects to generate positive free cash flow of between £25 million and £35 million for the full year, which would represent its first year of positive free cash flow since its initial public offering.
THG Nutrition Reports 5.3% Revenue Growth
THG Nutrition recorded a 5.3% increase in third-quarter revenue, supported by higher sales volumes across its Myprotein business and continued expansion through retail and foodservice partnerships.
Myprotein branded volumes increased by 36.2% year-on-year, reflecting growth in product distribution and customer demand across the brand’s markets.
The division continued developing its omnichannel distribution strategy through commercial relationships with Five Guys, Krispy Kreme, Gold’s Gym, Caffè Nero, Pladis and Iceland.
These arrangements form part of THG’s efforts to expand Myprotein’s distribution beyond its direct-to-consumer operations into foodservice, retail and fitness channels.
THG also reported progress in securing long-term raw material supply contracts, alongside a reduction in whey prices.
The company expects lower whey input costs and its supply arrangements to contribute to Nutrition’s profit margins into 2027.
THG Beauty Revenue Declines 0.6% to £256.4 Million
THG Beauty reported third-quarter revenue of £256.4 million, a decline of 0.6% compared with the corresponding period in 2025.
The division recorded modest growth across its core brands and markets, although overall revenue was affected by the timing of certain customer orders.
THG said dispatch delays resulted in some advent calendar revenue being deferred into October, rather than recognised during the third quarter.
Advent calendar sales remain an important contributor to the division’s profitability, particularly during the seasonal trading period.
The company also continued investing in digital services and customer loyalty initiatives across its beauty platforms.
Its artificial intelligence-powered Beauty Advisor is currently handling approximately 250,000 customer conversations each month, according to THG.
The group is also preparing to participate in YouTube’s Shopping Affiliate Programme, expanding its use of digital channels for product discovery and sales.
Meanwhile, THG Beauty’s loyalty membership exceeded 3.9 million, reflecting the scale of its customer engagement programmes across its online retail operations.
Cash Flow Guidance and Fourth-Quarter Outlook
THG said working capital management and operational measures have contributed to its financial performance during 2026.
The company is also implementing changes intended to mitigate the effects of European Union duty and tariff arrangements, with the programme expected to be fully implemented by the middle of 2027.
Management expects revenue growth across the group’s continuing operations to accelerate during the fourth quarter, which is traditionally its largest seasonal trading period.
The revised full-year adjusted EBITDA forecast of £103 million reflects the group’s updated expectations for profitability across THG Nutrition and THG Beauty.
THG’s free cash flow guidance of £25 million to £35 million remains a forecast and is dependent on financial performance and working capital movements during the remainder of the year.
The company continues to focus on expanding its consumer brands, developing distribution partnerships and investing in digital capabilities across its beauty and nutrition operations.
About THG PLC
THG PLC (LSE:THG) is a Manchester-based e-commerce and consumer brands group operating internationally through its THG Beauty and THG Nutrition divisions.
THG Beauty operates online retail platforms including Lookfantastic, Dermstore and Cult Beauty, offering products from more than 1,000 third-party brands alongside its own beauty portfolio.
THG Nutrition focuses on sports nutrition, health and wellness products, with Myprotein among its principal consumer brands.
The group distributes products through direct-to-consumer websites, retail partnerships and other commercial channels across markets including the United Kingdom, Europe, the United States and Asia.
THG’s operating strategy includes expanding its distribution network, developing brand partnerships and investing in digital technology, customer loyalty programmes and data-driven retail services.
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