THG has reported a return to growth and improved profitability in its latest trading update, released ahead of its Annual General Meeting.
The group expects first-half revenue to rise by around 6.5%, compared with a 2.5% decline in the same period last year. Adjusted EBITDA for the first half is set to reach at least £40m, marking a significant year-on-year increase. Free cash flow is also forecast to be the strongest since 2021.
On a last twelve months basis to May 2026, adjusted EBITDA has increased to around £94m, up from £68.9m a year earlier. The company said this reflects “disciplined cost management, gross margin maintenance and targeted category expansion.” Full-year guidance remains unchanged.
Back on track
Matthew Moulding, CEO of THG, said: “We are on track with our growth and margin expansion strategy across the Group. By prioritising home markets and trending categories in THG Beauty, we continue to drive high-quality growth across an expanding customer base.
“In THG Nutrition, Myprotein is reaching more consumers than ever. Year-to-date unit growth of +60% has been underpinned by our rapid retail expansion and category diversification, with c.18% of D2C customers purchasing activewear in May 2026.
“The Group continues to deliver strong year-on-year Adjusted EBITDA growth, notwithstanding the broader macroeconomic backdrop, including unprecedented whey commodity inflation levels.”
In THG Beauty, skincare was a key growth driver, with revenues up 9.2% year to date. Lookfantastic continued to gain share in the UK prestige beauty market and is seeing strong traction through brand launches and social commerce, including growth of around 48% on TikTok Shop in the second quarter.
THG Nutrition also performed strongly, supported by product innovation, retail expansion and a shift towards higher-margin categories.
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