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Highlights

  • THG's revenue reached £783.4 million, down -2.6% year-on-year (constant currency), with growth in Nutrition offsetting Beauty declines.

  • Disposal of Claremont Ingredients for £103 million and Ingenuity demerger accelerate path towards a net cash position.

  • FY25 trading guidance maintained, with upgraded momentum expected in H2 driven by THG Nutrition and THG Beauty recovery.

For the six months ended 30 June 2025, THG PLC (ASX:THG) reported group revenue of £783.4 million, representing a decline of -2.6% at constant currency compared to the prior year. Adjusted EBITDA was £24.0 million (H1 2024: £37.1 million), weighted towards Q2 with management expecting higher Q3 contribution.

Gross margin stood at 41.1% (H1 2024: 42.6%), reflecting higher whey input costs. Margins are anticipated to recover in H2. Group operating loss was £30.0 million, broadly in line with H1 2024, while statutory profit reached £76.3 million, compared with a loss of £121.2 million in the prior year, supported by discontinued operations and the Ingenuity demerger.

Cash and available facilities amounted to £279.4 million, increasing proforma by around £103 million following completion of the Claremont Ingredients disposal. Net debt reduced to £321.4 million (H1 2024: £350.5 million), and to approximately £220 million on a proforma basis. Refinancing in March 2025 provided long-term committed facilities extending to 2029.

THG Beauty

Revenue in THG Beauty declined -5.9% in H1, reflecting withdrawal from certain sales activities in Europe and Asia, disposals including the luxury portfolio, and ongoing investment in own brands. Despite this, Q2 UK retail trading delivered its highest growth rate since Q1 2024.

Customer engagement increased with LOOKFANTASTIC loyalty members rising to 3.2 million, up 54% between Q1 and Q2. Over 70 new brand launches were introduced, including Gucci Beauty, with revenue from new brands expected to be 50% higher than in 2024.

Adjusted EBITDA for the division was £20.2 million (H1 2024: £28.6 million), reflecting lower revenue and gross profit partly offset by improved distribution efficiencies.

THG Nutrition

Nutrition revenue grew +3.1% to £303.6 million (H1 2024: £300.3 million), with Q2 marking the highest growth since early 2022. The Myprotein brand continued to expand its footprint, being recognised as the leading sports nutrition brand across Europe and the UK.

Offline retail channels expanded through new partnerships, with US doors increasing to around 8,400 (2024: 1,500), including listings in Walmart. Licensing agreements will further extend brand reach, with product launches scheduled with major European food-to-go and global confectionery partners.

Adjusted EBITDA was £12.0 million (H1 2024: £19.6 million), impacted by whey commodity pricing, though distribution and payroll efficiencies partially offset this effect.

Strategic Developments

The completed demerger of THG Ingenuity and the disposal of Claremont Ingredients for £103 million have accelerated THG’s transition towards a net cash position. Gross debt was reduced by £374 million during the period, with further deleveraging expected as trading momentum builds.

Capital expenditure decreased to £10.5 million (H1 2024: £53.9 million pre-demerger), supporting a reduction in free cash outflow to £77.7 million (H1 2024: £126.7 million).

Outlook

THG reiterated its FY25 guidance, with the Board highlighting continued confidence in the medium-term outlook. Beauty is expected to return to growth in H2, delivering revenue growth of +1.0% to +3.0%, while Nutrition is forecast to grow between +10.0% and +12.0%.

Myprotein’s vertically integrated model is anticipated to drive both revenue and gross margin improvement in H2. Pricing relief in whey protein is expected to emerge gradually.