E-commerce group THG (THG) ticked up 8% to 34p after FY25 results beat forecasts off the back of a record H2 performance.
The Manchester-based business behind sports nutrition brand Myprotein and beauty retailer Lookfantastic also highlighted a ‘strong start’ to FY26.
This positive start underpins THG’s FY26 revenue and adjusted EBITDA expectations, with free cash flow generation anticipated to be in the £25 million to £50 million range. There was also relief as THG said less than 1.5% of its revenues are exposed to war-blighted Middle East regions.
EBITDA beat
Guided by CEO Matthew Moulding, THG delivered adjusted EBITDA of £76.6 million for FY25. That was down 8.1% year-on-year but ahead of consensus estimates and the company’s previous £74 million guidance.
Pre-tax losses narrowed from more than £200 million to £69.4 million. THG bounced into the black at the operating profit level following the sale of Claremont Ingredients.
Continuing revenue grew 2.3% year-on-year to £1.72 billion, driven by sales growth in both the THG Beauty and THG Nutrition businesses. The former witnessed a ‘marked acceleration’ and exited 2025 with ‘robust momentum’ in the UK and US markets.
For FY26, THG expects net debt to reduce to between £110 million and £130 million. This is before any strategic asset disposals and reflects a combination of free cash flow generation and VAT repayments.
What did the CEO say?
Moulding said his charge had returned to consistent growth ‘against a challenging macro-economic backdrop through disciplined investment in our brands and an unwavering focus on our customers worldwide’.
He pointed out that Lookfantastic ‘led the charge in the UK, delivering outstanding growth and becoming the number one UK beauty retailer on TikTok Shop’. He also called out Myprotein as ‘the world’s largest online sports nutrition brand’, one that ‘remains one of our greatest assets’.
THG is a marmite stock amongst the investor community. Having demerged its THG Ingenuity division, the FTSE 250 firm is now a more streamlined and focused consumer group with a refinanced balance sheet.
It is also worth noting that Myprotein’s rival nutrition brand Huel was sold to Danone (BN) at an estimated 2.5-to-3 times sales. That implies there is lots of value within the group. Nevertheless, THG’s sizeable bottom line losses and lingering debt load still make us nervous. Avoid for now.
Read the press release here: https://www.thg.com/investor-relations
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