Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
THG has returned to profitability in 2025, delivering adjusted EBITDA of £76.6m ahead of company guidance and consensus (c.£74m), driven by revenue growth in its beauty and nutrition businesses.
The group, which owns brands including Lookfantastic and Myprotein, reported adjusted revenue of £1.71bn for the fiscal year, up 2.3%.
This performance exceeded market consensus and was supported by a marked acceleration in the beauty division during the second half of the year.
In the nutrition sector, Myprotein expanded its physical retail presence to over 40,000 stores globally.
Following the stabilisation of its balance sheet and significant de-leveraging, the group has confirmed it enters 2026 with strong trading momentum across its primary UK and US markets.
The group’s FY 2026 revenue and Adjusted EBITDA expectations remain unchanged and in line with company consensus at £1.78bn and £101.4m respectively.
It also expects Mid-to-high single digit revenue growth in THG Nutrition, driven by further expansions to Myprotein’s offline and licensing footprint and multi-category new product launches.
Additionally, following a ruling of a retrospective VAT claim submitted to HMRC that protein powders qualify for zero-rated VAT, THG is seeking a cash payment of approximately £78m.
This potential inflow, combined with operational improvements, is expected to reduce the group’s net debt to between £110m and £130m by the end of the next reporting period.
Matthew Moulding, chief executive of THG, said: “Today’s results reflect the strength of our business models. I am pleased with how we have continued to transform THG during 2025, returning to consistent growth against a challenging macroeconomic backdrop through investment in our brands.
“THG Beauty has been a standout performer, which was especially pleasing after a slower start to the year. Lookfantastic led the charge in the UK, delivering outstanding growth and becoming the number one UK beauty retailer on TikTok Shop. We also celebrated our biggest-ever year for new brand and exclusive product launches, keeping our proposition fresh through newness and product discovery.”
Moulding added: “The refinancing of the group’s balance sheet was pleasing, resulting in deleveraging ahead of any settlement of our £78m claim with HMRC. We enter 2026 on the front foot with trading momentum and a focus on material free cash flow delivery.”
