THG PLC (LSE:THG) reported a 35% drop in first-half earnings and an increased statutory loss but said momentum was improving into the second half.
Group revenue fell 7.6% £783.4 million in the first six months of 2025, down 2.6% at constant currency, while gross margin was 41.1%, compared with 42.6% a year earlier, reflecting higher whey prices in its nutrition business.
Adjusted EBITDA declined to £24 million from £37.1 million and the group recorded a statutory loss before tax of £66.7 million from its continuing operations, down from £56.3 million a year ago.
A statutory profit of £76.3 million was recorded when including profit from discontinued operations after it demerged its THG Ingenuity arm in January.
THG Beauty revenue fell 5.9% at constant currency, but has returned to growth in the third quarter, with second-half revenue growth of 1-3% expected.
THG Nutrition revenue rose 3.1% at constant currency, with second-half revenue growth forecast at 10-12%.
Chief executive Matthew Moulding said: "I'm really pleased at how THG has gained momentum throughout the first half and into Q3.
"A slower start to the year in Beauty, alongside record whey prices in Nutrition, initially held back performance, but we saw clear improvement in Q2, in particular supported by Myprotein offline retail and licensing sales."
He said the first half had been a "transformative period which sets us up well for our most profitable and cash generative period in H2.
"Our momentum is positive and Q3 will be our strongest trading period of the year so far, underpinning our confidence in the outlook."