THG reportedly exceeded its own financial targets in the first half, according to data reported by Retail Gazette. The group recorded revenue of £828.7 million for the six-month period ended 30 June, with adjusted EBITDA of £42.8 million, above the group's guidance of at least £40 million.
This performance rests largely on THG Nutrition, which houses Myprotein, described as the best-performing division of the half. The division's adjusted EBITDA growth is said to have been driven by price increases, diversification of sales channels and the development of higher-margin categories, offsetting whey costs that remained elevated. The group now expects Myprotein to sell more than 130 million products over the full financial year.
Matthew Moulding, chief executive of THG, said the group « récolte les fruits » (reaping the rewards) of Myprotein's global rebranding and its expansion into licensing, activewear and higher-margin categories.
Beauty and improving cash flow
At THG Beauty, which brings together Lookfantastic, Cult Beauty and Dermstore, the group added more than 50 new brands during the half. K-beauty in particular attracted more than 64,000 new customers.
On the financial side, the group's cash outflow improved by £6.8 million, to £70.9 million, despite higher working capital requirements. THG says it achieved its best first-half free cash flow performance since 2021.
Reste (Still), the third quarter looks set to be more difficult. THG expects a slowdown linked to the introduction of new European Union tariffs affecting THG Beauty, weaker demand during the European heatwave, and the deferral of some own-brand sales to later periods.
Against this backdrop, the group points to early signs of easing pressure on record whey prices, which could support Myprotein's margins as it approaches 2027.
