THG (THG) H1 2025 earnings summary

Executive summary

• Group revenue for H1 2025 was £783.4m, down 2.6% year-over-year, with gross margin at 41.1% and adjusted EBITDA at £24.0m (3.1% margin); trading momentum improved in Q2 and Q3.

• Strategic changes, including the demerger of THG Ingenuity and sale of Claremont Ingredients for £103m, reduced gross debt by £374m and accelerated the move toward a net cash position.

• Nutrition division returned to growth (+3.1% YoY), driven by MyProtein rebrand, new product launches, and offline retail expansion; Beauty saw resilient UK retail growth and rebounded in Q3.

• Group statutory profit for the period was £76.3m, including gains from discontinued operations.

• Both businesses entered H2 2025 in growth, with positive trading momentum and confidence in full-year and medium-term outlook.

Financial highlights

• Group revenue: £783.4m (-2.6% YoY), gross margin: 41.1% (down 150bps YoY), adjusted EBITDA: £24.0m (3.1% margin), operating loss from continuing operations: £30.0m.

• Net debt at £321.4m pre-Claremont disposal (proforma c.£220m), with cash and available facilities of £279.4m at period end.

• Capex reduced to £10.5m (H1 2024: £53.9m pre-demerger), reflecting group simplification.

• Free cash outflow improved to £77.7m (H1 2024: £126.7m outflow).

• Adjusted EBITDA margin fell to 3.1% from 4.4% YoY.

Outlook and guidance

• H2 2025 guidance: Beauty revenue growth +1% to +3%, Nutrition +10% to +12%; full-year and medium-term outlook remain positive.

• FY 2024 revenue expected to decline 2.5%, with medium-term (2026–2028) growth targeted at mid- to high-single digits.

• Gross profit margin expected at c.43% medium-term; adjusted EBITDA margin targets: Beauty >6%, Nutrition c.12%.

• Free cash flow and net leverage expected to improve, supporting a neutral net cash/debt position.

• MyProtein to limit price increases to prioritize long-term market share and customer loyalty.