THG Shares Jump After Profit Upgrade Despite Modest Q3 Sales Growth

THG PLC (LON: THG) has upgraded its full-year Adjusted EBITDA expectation to £103m, ahead of market consensus. The online beauty and nutrition group, owner of Myprotein and Lookfantastic, published its third-quarter trading statement today.

THG shares were quoted at 30.08p at 8:12am UK time today on a delayed basis, up 9.3% on yesterday’s close of 27.52p. They opened at 30.1p, and the day’s range so far runs from 29.3p to about 31.45p.

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Adjusted EBITDA, a measure of operating profit before interest, tax, depreciation and one-off items, is now expected at £103m for 2026, against company-quoted consensus of £101.7m. The company said that was ahead of its own previous expectations, reflecting stronger Nutrition performance. Trailing twelve-month Adjusted EBITDA reached £100.6m at 30 September, up 50% on a like-for-like basis.

“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.”

Matthew Moulding, chief executive, THG PLC

The catch is revenue. Group sales for the quarter to 30 September were £408.8m, up 1.5% at constant currency on continuing operations, with Beauty down 0.6% and Nutrition up 5.3%. About £3m of beauty advent calendar sales made in September were not dispatched until October after kitting problems at a new third-party supplier. Excluding that, THG said Group growth was 2.1%.

In Nutrition, Myprotein branded unit volumes rose 36.2%, and the price of WPC80, a whey protein ingredient, has fallen about 20% since the 10th of September interim results. THG said fourth-quarter needs are secured at better pricing than the third quarter, and first-quarter 2027 cover is being secured below prevailing market rates.

Before today the highest close in that window was 35.06p on the 26th of August, and the lowest was 25.96p on the 17th of September.

THG guided to free cash flow of £25m to £35m for 2026, in line with consensus and its first positive year since the IPO. It expects an update on outstanding VAT claims from HMRC, the UK tax authority, by the end of October. Management said the fourth quarter, its busiest, should bring faster revenue growth.