THG (LSE:THG) raised its full-year adjusted earnings (EBITDA) guidance to £103m on Thursday, ahead of both market consensus and its own previous expectations.
In a trading statement covering the third quarter, to 30 September, the Manchester-based online beauty and nutrition retailer said the upgrade reflects stronger performance at THG Nutrition, the division behind Myprotein.
"Following a particularly strong first half of 2026, I'm pleased to report that our momentum has continued through Q3, with profitability exceeding our expectations," said chief executive Matthew Moulding, adding that Q4 is traditionally the group's "busiest and most cash-generative quarter."
Last-twelve-month adjusted EBITDA rose 50% year-on-year to £100.6m at the end of September, up from £95.4m at the end of June, on a like-for-like basis excluding the sale of Claremont Ingredients. Group revenue grew 1.5% on a continuing constant-currency basis in the third quarter, with core brands and markets, representing around 87% of group revenue, up 6.1% year-on-year.
THG said both figures exclude the effect of beauty advent calendar sales made in September but dispatched in October owing to kitting issues at a new third-party supplier; including that delayed revenue, quarterly growth would have been 2.1%.
Meanwhile, THG Nutrition delivered quarterly revenue of £152.4m, up 5.3% year-on-year on a continuing constant-currency basis, or 10.8% excluding Asia, with Myprotein branded unit volumes up 36.2% year-on-year.
THG Beauty revenue fell 0.6% on the same basis to £256.4m, which the company attributed partly to the deferred timing of a large own-brand customer contract delivered in the prior-year quarter and since re-ordered.
Discussing the market backdrop, THG said 'WPC80' whey protein concentrate prices have fallen around 20% since its half-year results on 10 September, with Q4 raw material requirements secured at more favourable pricing than in the third quarter and coverage for the first quarter of 2027 now being secured below prevailing market rates.
THG said it remains on track to deliver its first year of positive free cash flow since its initial public offering, with full-year free cash flow guidance of £25m to £35m, in line with consensus.
The group said it continues to await a substantive update from HMRC on its outstanding VAT claims relating to protein powders and supplements, with an update now expected by the end of October.
THG added that it expects group revenue growth to accelerate in the fourth quarter, supported by the timing of dispatches across THG Beauty for advent, manufacturing and own-brand ranges.