THG PLC (LSE:THG), the beauty and nutrition group behind the Myprotein and Lookfantastic brands, reported first-half revenue and profit ahead of its own guidance, driven by a strong performance from Myprotein.
Group revenue rose 7.2% to £828.7 million in the six months to 30 June, above guidance of 6.5%, while adjusted earnings before interest, tax, depreciation and amortisation more than doubled to £42.8 million, beating a target of at least £40 million.
The company said it delivered its strongest first-half free cash flow since 2021, with the operating loss narrowing sharply to £10.6 million from £30 million a year earlier.
Myprotein, which THG describes as the world's largest online sports nutrition brand, grew revenue 9.2% and sold 58.5 million branded products worldwide, up 57%, with volumes on track to exceed 130 million for the full year.
Nutrition profitability improved as a strategy to offset record whey prices took hold, lifting the division's gross margin to 44.6% and helping adjusted EBITDA there treble to £26 million.
THG Beauty grew revenue 5.9% and continued to gain market share, with Lookfantastic outperforming the UK prestige beauty market and holding the top multi-brand retailer spot on UK TikTok Shop.
Chief executive Matthew Moulding said the results reflected the group's transition from a capital-intensive technology and brands business into a profitable global leader in nutrition and beauty.
The company reiterated that full-year revenue, adjusted EBITDA and free cash flow remain in line with consensus, and guided to positive free cash flow of £25 million to £35 million for the year.
It cautioned that third-quarter revenue growth would slow to around 2%, hit by a European heatwave, new European Union duty on beauty products and some own-brand sales phasing into the fourth quarter, before growth recovers to 6% to 7% in the final quarter.
Looking to next year, THG expects earnings growth and an improving working capital position in a lower whey-cost environment to drive a material rise in free cash flow.
That, combined with a potential VAT refund of up to £78 million from HMRC on protein and supplement products, should cut net debt to around one times earnings by the end of 2027.
The group added that bid interest in several non-strategic brands could push it into a net cash position next year, having sold its Claremont Ingredients arm for £103 million in August 2025.
