Manchester-based ecommerce and services company THG has admitted a ‘challenging’ Q1 for its 2025/6 financial year, but noted ‘accelerating momentum’, leading to its strongest quarter of the year in Q4.
The group delivered adjusted revenue of £1.72bn for the financial year, and reported an adjusted EBITDA of £76.6m – ahead of company guidance and consensus (circa £74m).
2025 started with the demerger of THG Ingenuity and included the disposal of Claremont Ingredients for £103m, which helped reduce net debt from £304.3m to £233m.
The company also said it expects to benefit from a VAT ruling on protein powders, with the potential of a successful £78m claim against HMRC.
Matthew Moulding, CEO of THG, commented: “Today’s results reflect the strength of our business models and the exceptional execution by the team. I am pleased with how we have continued to transform THG during 2025, returning to consistent growth against a challenging macroeconomic backdrop through disciplined investment in our brands and an unwavering focus on our customers worldwide.
“THG Beauty has been a standout performer, which was especially pleasing after a slower start to the year. Lookfantastic led the charge in the UK, delivering outstanding growth and becoming the number one UK beauty retailer on TikTok Shop. We also celebrated our biggest-ever year for new brand and exclusive product launches, keeping our proposition fresh through newness and product discovery.
“Myprotein as the world’s largest online sports nutrition brand, remains one of our greatest assets. Even in an unprecedented commodity cost environment, the brand’s momentum is clear as it enters its 5th consecutive quarter of growth. Our expansion into offline retail has seen exceptional results, and our licencing model is seeing unparalleled momentum, with over 43 million licensed products sold out in the year. Our diversification beyond whey protein is taking shape, especially in activewear which delivered rapid growth in both revenues and margins throughout the year.
“The refinancing of the Group’s balance sheet in the year was especially pleasing, resulting in significant deleveraging, ahead of any settlement of our £78m claim with HMRC. We enter 2026 on the front foot with strong trading momentum and a focus on material free cash flow delivery.”
THG’s share price stood at 33.7p at the time of writing, up from 31.6p at yeaterday’s closed, which no one can complain about in the current market maelstrom. The company has a market cap of £558m.
