THG revenues fall in H1 but Q2 rebound lifts confidence

THG has revealed it delivered a first-half performance in line with guidance, as the company returned to revenue growth in Q2 with momentum continuing into H2. 

For the six months to 30 June 2025, the group stated that trading momentum from Q2 into Q3 continues to build positively, with the strategic model changes implemented across both THG Beauty and THG Nutrition throughout 2024 “now bearing results”.

According to THG, this momentum “underpins confidence” in the full year and medium-term outlook.

Additionally, the successful THG Ingenuity demerger at the start of H1 alongside the Q3 disposal of Claremont Ingredients to Nactarome Group for £103m, has put the group on an “accelerated path” towards a net cash position, with the H1 2025 refinancing securing long-term committed facilities.

However, in H1 the group’s revenues fell by 2.6% to £783.4m,  reflecting weaker Beauty sales and higher whey costs in Nutrition. 

Its adjusted EBITDA also declined from £37.1m in H1 2024 to £24.0m, but in line with guidance, with performance weighted towards Q2. Q3 adjusted EBITDA is expected to be meaningfully higher, reflecting “positive” H1 exit momentum. 

Its gross margin also fell from 42.6% to 41.1%, reflecting whey price impact. Gross margins expected to return to growth in H2. 

Furthermore, THG Nutrition grew 3.1% in the first half, supported by new customer acquisition and expansion into offline retail. 

A rebrand of Myprotein and an increase in licensing partnerships are expected to drive stronger performance.

In contrast, THG Beauty reported a 5.9% revenue decline in H1 but returned to growth in Q2, helped by UK retail gains and loyalty growth at Lookfantastic, where membership rose to 3.2m.

Looking ahead, THG said that its strongest trading performance of the 2025 financial year to date came in the third quarter, with full-year guidance unchanged. 

The group now expects THG Beauty to deliver second-half revenue growth of 1% to 3%, compared with a 5.9% decline in the first half, while THG Nutrition is forecast to grow 10% to 12% after rising 3.1% in H1.

Matthew Moulding, CEO of THG, 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.

 “…I’d like to thank everybody in the business for their dedication and focus during this 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.”