THG PLC (LSE:THG) said it remains on track to meet full-year expectations after a return to revenue growth and a sharp improvement in profitability and cash flows.
The online retailer and protein shakes maker also flagged that it is still awaiting a response from HMRC regarding retrospective VAT claims worth around £78 million linked to its nutrition arm.
Revenue in the first half of 2026 is expected to increase by around 6.5%, compared with a 2.5% decline a year earlier, while adjusted EBITDA is forecast to be at least £40 million.
On a last-12-month basis, adjusted EBITDA increased to around £94 million by the end of May, up 36% from £68.9 million a year earlier.
The stronger performance is expected to support THG's best first-half free cash flow since 2021, with the group reiterating guidance for full-year revenue, adjusted EBITDA and cash generation.
THG Beauty benefited from strong skincare demand, with year-to-date skincare sales up 9.2%. The division's Lookfantastic platform continued to gain market share, supported by new brand launches and strong growth through TikTok Shop.
THG Nutrition, owner of the MyProtein brand, reported continued growth despite elevated whey costs, helped by pricing actions, product innovation and retail expansion, including for its range of gym clothing.
Revenue excluding Asia is expected to increase around 11% in the first half as the company shifts towards a licensing model in the region.
Chief executive Matthew Moulding said: "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 circa 18% of D2C customers purchasing activewear in May 2026."
Separately, THG said its Term Loan B was trading above par during the first half of 2026 for the first time since issuance in March 2025, which it said reflected growing lender confidence following a series of positive trading updates.
