THG (LSE:THG), the online nutrition and beauty group behind Myprotein and Lookfantastic, reported group revenue of £828.7m for the half year ended 30 June, up 7.2% year-on-year and above its guidance of 6.5% growth.
Earnings (adjusted EBITDA) rose 109% on a like-for-like basis to £42.8m, ahead of guidance of at least £40m, with THG Nutrition's margin improving 210 basis points to 5.2% group-wide.
Myprotein sold 58.5m branded products in the half, up 57% year-on-year, and is on track to exceed 130m units for the full year.
"THG delivered a strong first half, reflecting our successful transition from a capex-intensive technology and consumer brands group into a highly profitable global leader in Nutrition and Beauty", said chief executive Matthew Moulding.
THG Nutrition grew revenue 9.2%, or 12.1% excluding Asia, while gross margin improved 120 basis points to 44.6% on whey mitigation and channel diversification. THG Beauty grew 5.9%, with gross margin down 90 basis points to 38.8% on order phasing into the second half.
Cash and available facilities stood at £238.7m, with free cash flow improving £6.8m against the prior year, though net debt before leases rose to £329.7m, partly reflecting one-off demerger payments.
The group guided to full-year results in line with consensus, expecting 2% revenue growth in the third quarter due to EU beauty duty and heatwave effects, rising to 6-7% in the fourth quarter, and free cash flow of £25m to £35m for the year.
News Intelligence what this means for the company
THG beat its own H1 guidance on both revenue (7.2% growth vs. 6.5% guided) and adjusted EBITDA (£42.8m vs. £40m floor), with Myprotein unit sales up 57% year-on-year and THG Nutrition margin expanding 210 basis points to 5.2%. The company is executing a stated pivot from capex-heavy tech operator to a profitable nutrition and beauty retailer, and improved lender confidence following positive trading updates has already begun to show in its debt pricing.
- THG Nutrition's 9.2% revenue growth (12.1% ex-Asia) and 120 basis point gross margin gain suggest the unit is the engine of the turnaround; Beauty's 5.9% growth and 90 basis point margin compression signal uneven momentum across the portfolio.
- Net debt rose to £329.7m despite improved free cash flow, partly from one-off demerger costs; the company's £238.7m cash position leaves limited buffer if Q3 headwinds (EU beauty duty, heatwave) persist beyond guidance.
H1 execution validates the profitability pivot and supports full-year consensus guidance, but Q3 is flagged as a slowdown quarter (2% growth) with recovery dependent on Q4 rebound to 6–7%. The margin expansion in Nutrition is material, but Beauty's softness and elevated net debt warrant monitoring through the second half.
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