THG (THG) Trading Update summary

Trading performance and revenue outlook

• Returned to constant currency revenue growth in Q2, with FY 2025 guidance remaining unchanged.

• Beauty segment improved, with Q2 revenue decline narrowing to -2.0% to -3.0% from -9.8% in Q1.

• Beauty retail saw strong UK growth and market share gains, with withdrawal from lower-margin regions to neutralize revenue drag from Q3.

• Nutrition segment expected Q2 revenue growth of +5.0% to +7.0%, fastest since Q1 2022.

• Beauty own brand revenue impacted by timing of key orders, expected to reverse in H2.

Nutrition segment expansion and strategy

• Nutrition's offline strategy gained traction, with Myprotein in over 34,000 stores globally.

• New retail listings in Europe and Asia, including Kruidvat, 7-Eleven, Costco, and Decathlon.

• US offline presence to increase nearly fivefold to about 8,400 stores, with new listings in Walmart, CVS, and GNC.

• Myprotein expects to sell around 45 million units offline and via licensing in 2025, reaching over 40,000 global doors.

• Retail sales value of offline and licensed Nutrition products projected at £170m for FY 2025.

Market conditions and risk management

• Milk and whey prices remain high but show recent signs of softening, especially for high-protein concentrations.

• Direct tariff exposure expected to be under £1.0m before mitigation, with ongoing monitoring of US trade policy impacts.

• Continued focus on mitigating risks to raw material supply chains and US consumer sentiment.