THG Returns to Revenue Growth in Q2, Sees Positive Start to H2

THG PLC (LON:THG) announced its interim results for the half-year ended June 30, 2025, on Thursday, showcasing a return to group revenue growth in the second quarter at +0.9%.

The company added that the positive momentum has continued into the third quarter, bolstering confidence in the full-year and medium-term outlook.

Strategic model changes implemented across both THG Beauty and THG Nutrition throughout 2024 are said to now be yielding results.

Despite the positives, THG shares are down around 2% in early Thursday trading.

Group revenue for H1 2025 stood at £783.4 million, a decrease of 2.6% year-over-year on a constant currency basis.

Gross margin was 41.1%, reflecting the impact of whey prices, with expectations of a return to growth in H2.

Adjusted EBITDA was reported at £24.0 million, in line with the August 2025 trading update, and heavily weighted towards Q2. A meaningfully higher Q3 is anticipated, fueled by positive momentum exiting H1.

The company's cash and available facilities amounted to £279.4 million following the H1 2025 refinancing, which substantially reduced gross debt. This figure is further bolstered by approximately £103 million from the disposal proceeds of Claremont Ingredients.

THG anticipates the strongest trading performance of FY 2025 in Q3, with guidance remaining unchanged. THG Beauty is expected to deliver H2 revenue growth of +1.0% to +3.0%, while THG Nutrition is projected to grow by +10.0% to +12.0%.

The successful demerger of THG Ingenuity at the start of H1, along with the Q3 disposal of Claremont Ingredients to Nactarome Group for £103 million, is expected to accelerate the company's path towards a net cash position. .

CEO Matthew Moulding stated, “I'm really pleased at how THG has gained momentum throughout the first half and into Q3,” reinforcing the company’s strategic focus.

“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,” Moulding added.