11th Sep 2025 10:01
(Alliance News) - THG PLC on Thursday said sales momentum was building, despite a weak start to the financial year, with trading in the third quarter the strongest in 2025 so far.
The Manchester-based retail firm, behind brands such as Lookfantastic and Myprotein reported a pretax loss of GBP66.7 million in the first half of 2025 widened from GBP56.4 million the year prior.
Revenue weakened 7.6% to GBP783.4 million from GBP848.1 million, or by 2.6% at constant currency.
THG Beauty sales dropped 12%, or by 5.9% at constant currency, while THG Nutrition sales grew 1.1%, or by 3.1% at constant currency.
Adjusted earnings before interest, tax, depreciation and amortisation fell 35% to GBP24.0 million from GBP37.1 million with adjusted Ebitda margin of 3.1%, down from 4.4%.
Gross profit margin declined to 41.1% from 42.6% reflecting whey price impact, but is expected to return to growth in the second half of 2025.
THG said trading gained momentum throughout the first six months of 2025 and this has continued into the third quarter, which has seen the strongest trading performance in the year so far.
As a result, THG maintained guidance. It expects THG Beauty to deliver second half revenue growth of 1.0% to 3.0% at constant currency, and predicts growth of 10% to 12% at THG Nutrition.
"A slower start to the year in Beauty, alongside record whey prices in Nutrition, initially held back performance, but we saw clear improvement in Q2, in particular supported by Myprotein offline retail and licensing sales," said Chief Executive Matthew Moulding.
"Our momentum is positive and Q3 will be our strongest trading period of the year so far, underpinning our confidence in the outlook," he added.
Shares in THG rose 8.8% to 31.18 pence each in London on Thursday morning but have fallen 45% in the last 12 months.
Net debt fell, reflecting the demerger of THG Ingenuity and the refinancing of long-term debt facilities. It dropped to GBP321.4 million from GBP350.5 million.
A further decline is expected to around GBP220 million on completion of the GBP103 million Claremont Ingredients disposal, announced in August.
By Jeremy Cutler, Alliance News reporter
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