THG (LON: THG) shares have swung sharply on Thursday after the Manchester-based beauty and nutrition group posted a strong set of interim results, only for early gains to evaporate as the session progressed.
The stock opened higher at 32.5p and touched an intraday high of 32.92p, before falling back to a low of 30.3p and closing at 30.86p, down roughly 2.6% on the previous close of 31.7p.
The initial rally reflected a solid set of numbers. THG reported group revenue growth of 7.2% to £828.7m for the first half, ahead of its own guidance, while Adjusted EBITDA more than doubled to £42.8m.
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Both the Beauty and Nutrition divisions extended their run of growth to four consecutive quarters, with Myprotein again singled out as the standout performer.
However, the shares lost momentum as investors focused on THG’s outlook commentary. Management flagged that Q3 revenue growth would slow to around 2%, citing a European heatwave, newly imposed EU duty charges on beauty products since 1 July, and phasing of own-brand sales into the fourth quarter.
Persistently elevated whey commodity costs, though showing early signs of easing, also remain a headwind for the Nutrition division’s margins.
Despite the pullback, THG maintained that full-year revenue, EBITDA and free cash flow expectations remain in line with consensus, with chief executive Matthew Moulding pointing to “real momentum” heading into the second half.
THG shares are down more than 33% year-to-date.
