THG delivered a strong FY25 performance that saw it return to growth after a shaky H1, with a record H2 and renewed momentum across its subscriptions‑led Beauty and Nutrition businesses. The group reported adjusted revenue of £1.72bn, an increase of 2.3% on a continuing constant‑currency basis, with adjusted EBITDA rising to £76.6m — ahead of both guidance and market expectations.
Growth was fuelled by an acceleration in THG Beauty, and continued expansion within THG Nutrition that has seen Myprotein products stocked in more than 40,000 retail outlets worldwide. The business also completed a refinancing during the year, significantly strengthening the balance sheet and supporting what it described as a strong start to FY26. Management reiterated its full‑year guidance, maintaining expectations of £1.78bn in revenue and £101.4m in adjusted EBITDA, with net debt forecast to fall to between £110m and £130m.
A challenging start to the year
The bounce-back in the second half followed a challenging start to the year. Beauty experienced a slower opening quarter, while Nutrition came under pressure from record whey prices that squeezed margins and pushed adjusted EBITDA down to £24m in the first half. However, both divisions recovered as the year progressed. Beauty returned to revenue growth, led by Lookfantastic’s rapid expansion — it is now the number‑one UK beauty retailer on TikTok Shop, with a strong Gen Z following. Myprotein recorded its fifth consecutive quarter of growth, supported by strong offline and licensing sales and rising demand across categories including activewear.
What the analysts say
Analysts responded positively to the results. Jefferies said “THG is back into growth, set to generate solid free cash flow,” highlighting the group’s “exposure to some very interesting categories.” Peel Hunt, which carries a Buy rating and an 80p target price, noted the improving operational picture, saying “both divisions are delivering improvements across strategic KPIs and customer metrics.” JP Morgan also pointed to the strength of the underlying business model, commenting that THG is “setting up for sustainable growth into FY26,” supported by management’s confident position on free‑cash‑flow generation and net‑debt reduction.
Global wellness market acceleration
THG’s bounceback comes as the global wellness market — now worth around $2 trillion — continues to grow, driven especially by Gen Z and millennials who treat wellness as an everyday priority rather than an occasional indulgence, replacing the pub with protein drinks. This aligns closely with THG’s core categories: functional nutrition, beauty, healthy ageing and broader wellbeing, all areas seeing sustained demand from younger consumers. With Myprotein and Lookfantastic positioned at the intersection of these trends, THG enters FY26 with a strategic advantage in a market expected to expand further over the coming years.
Chief executive Matthew Moulding said the results reflected both the resilience of the business and the benefits of renewed focus: “Today’s results reflect the strength of our business models and the exceptional execution by the team,” he said. “We enter 2026 on the front foot with strong trading momentum and a focus on material free cash flow delivery.”
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