THG PLC (LON:THG) has announced its interim results for the half-year ended 30 June 2026.
Figures and commentary reflect continuing CCY[3] unless otherwise stated.
Key financial headlines
● Solid Group revenue growth: £828.7m, +7.2% YoY and above guidance of +6.5%[4].
○ Both THG Beauty and THG Nutrition in growth for four consecutive quarters.
○ THG Beauty delivered +5.9% revenue growth in H1, with THG Nutrition a highlight at +9.2%, +12.1% excluding Asia.
● Consistent gross margin[5]: 41.1% (H1 2025: 41.1%).
○ THG Nutrition’s gross margin5 improved to 44.6% (H1 2025: 43.4%), up 120bps, as the whey mitigation strategy, channel diversification and growth in margin-accretive categories continues to build momentum.
○ THG Beauty’s gross margin5 of 38.8% (H1 2025: 39.7%) reflects a 90bps reduction, primarily driven by a phasing of orders within manufacturing from H1 into H2.
● Adjusted EBITDA grew by +109% on a LFL basis1 to £42.8m (H1 2025: £24.0m, and £20.5m when excluding H1 2025 contribution from Claremont Ingredients, which was sold in August 2025).
· Strong profitability growth for THG Nutrition reflected a 210bps improvement in Group Adjusted EBITDA margin to 5.2% (H1 2025: 3.1%)
● Cash and available facilities of £238.7m, with free cash flow improving by £6.8m vs H1 2025.
Matthew Moulding, CEO of THG, commented:
“THG delivered a strong first half, reflecting our successful transition from a capex-intensive technology and consumer brands group into a highly profitable global leader in Nutrition and Beauty, focused on delivering sustainable growth in free cash flow. As a business, we delivered strong revenue growth and our Adjusted EBITDA more than doubled, driven by a stellar performance from the Myprotein brand.”
“The Group is now clearly reaping the rewards of Myprotein’s global rebrand delivered across 2023 and 2024, alongside the expansion of the brand into licensing, activewear and higher-margin categories. Brand recognition continues to reach record highs, supporting a 57% increase in Myprotein branded products sold worldwide in H1, to 58.5m products. The brand is on track to sell over 130m products in FY 2026, which we believe makes Myprotein not only the world’s largest sports nutrition brand, but also the fastest-growing established brand by product volumes.”
“THG Beauty continues to strengthen its position as a leading global digital beauty platform, underpinned by technology leadership, exciting new brand partnerships and strong brand health.”
“The strength of these first-half results demonstrates the progress we’ve made and the quality of the Group we have today. Looking ahead, we enter H2 with real momentum, whilst also acknowledging broader market challenges around consumer discretionary spend, record high whey commodity pricing, as well as recent EU tariffs. The Group has delivered significant initiatives to mitigate these headwinds, supporting FY 2026 consensus, while positive signs around the direction of whey input costs are encouraging for the future.”
H1 2026 Group trading performance
| £m | H12026 | H12025 | YoYGrowth[6] | Continuing CCY Change |
| THG Nutrition | 328.5 | 303.6 | +8.2% | +9.2% |
| THG Beauty | 500.2 | 479.9 | +4.2% | +5.9% |
| Total Revenue | 828.7 | 783.4 | +5.8% | +7.2% |
| THG Nutrition | 146.6 | 131.8 | +11.2% | |
| THG Beauty | 194.1 | 190.4 | +1.9% | |
| Gross profit[7] | 340.7 | 322.2 | +5.7% | |
| Gross profit margin | 41.1% | 41.1% | +0.0% | |
| THG Nutrition | 26.0 | 12.0 | +116.7% | |
| THG Beauty | 25.0 | 20.2 | +23.8% | |
| Adjusted EBITDA[8] | 42.8 | 24.0 | +78.3%(+109% LFL1) | |
| Adjusted EBITDA % | 5.2% | 3.1% | +210bps | |
| Adjusted items – cash | 4.3 | 1.7 | +£2.6m | |
| Adjusted items – non-cash | 1.3 | 3.7 | -£2.4m | |
| Operating loss | (10.6) | (30.0) | +£19.4m | |
| Net debt[9] | (329.7) | (321.4) |
All numbers and tables subject to rounding.
H1 2026 highlights
THG Nutrition
● Myprotein significantly strengthened its position as the world’s largest online sports nutrition brand, delivering revenue growth of +9.2%, increasing to +12.1% excluding Asia, with the retail model in that region transitioning from direct sales to a licensing model which is expected to be completed during H1 2027.
● In H1 2026, 58.5m Myprotein branded products were sold worldwide, compared to 37.2m in H1 2025 (+57% increase)[10]. The Myprotein brand is on track to sell in excess of c.130m units for FY 2026, with a significant pipeline for further expansion.
· Profit metrics substantially improved through pricing, innovation and channel diversification initiatives. A combination of solid revenue growth, adjusted gross margin improvement of +120bps to 44.6%, and rigid cost control across the business, combined with the application of zero-rating of VAT on certain products, led to H1 2026 Adjusted EBITDA more than trebling to £26.0m from £8.5m1 in H1 2025.
· Product innovation accelerated through H1 to broaden the Myprotein proposition, with several successful launches. These include Impact Whey Milkshake, which extends the flagship franchise into a thicker, milkshake-style format, and the Whey + range offering more protein options to match the needs and wants of a widening customer demographic.
· Strategic licensing-in partnerships deepened, with the Mars relationship extended through new Bounty and Twix launches building on the existing Mars and Snickers range. The range has proved successful in introducing new customers to both the Myprotein and Mars brands alike, with 1 in 5 Mars buyers having not shopped with Myprotein before.
· Licensing-out partnerships continue to scale rapidly, with royalty income increasing +64% YoY. Licensing-out delivered a retail sales value of £75m, +83% YoY. FY 2026 sell-in volumes are on track to exceed the targeted 60 million units (FY 2025: 43 million) extending the reach of the Myprotein brand well beyond D2C channels and reinforcing consumer awareness. Licensing-out partnership highlights include: Müller and Myprotein winning the Gold award at The Drum Awards for Best Partnership or Collaboration and the expansion of the Iceland partnership into Europe through the launch of high-protein products.
● A long-term focus on food to go channels is now yielding results. Myprotein’s market leading quality, combined with an unrivalled global brand following, has led to deals with Five Guys as well as teaming up with Spoon Cereals with both partnerships continuing to allow Myprotein to reach new consumption occasions.
· B2B and offline expansion continued through new customer listings and deeper strategic partnerships, as evidenced by the launch of the Vimto protein water, with offline channel revenue growth +22% YoY1. The business continues to make progress expanding its presence across international territories with model shifts supporting the offline strategy.
· Categories including hydration, creatine, collagen and activewear continued to grow their contribution, supporting margin enhancement.
o Activewear had a standout H1, with 18.5% of Myprotein online customers including a purchase of activewear in their basket contributing to +30% higher AOVs compared to non-activewear orders, and with annualised activewear run-rate sales approaching the Group’s £100m ambition.
· Enhancements to the online customer experience, with the launch of Fuel Coach, the AI-powered shopping assistant alongside virtual try-on for activewear. Fuel Coach resulted in 5.5x increase in first time buyer conversion and +15% AOV.
THG Beauty
· THG Beauty strengthened its position as a leading global prestige beauty platform, delivering revenue growth of +5.9%, Adjusted EBITDA growth of +23.8% with +80bps EBITDA margin improvement.
· THG Beauty Retail continued to gain market share across key markets, with Lookfantastic outperforming the UK prestige beauty market[11] and Dermstore also achieving market gains in the US. Performance underpinned by relationships with premium global beauty brands, with 50+ new launches during the period, including the recent launch of Clarins on Lookfantastic, a significant addition to the site’s premium beauty portfolio.
· Customer acquisition and engagement continued to strengthen through both emerging trends and new channels. K-Beauty remained a significant growth driver, attracting more than 64,000 new customers in H1.
· Dermstore continues to perform strongly as the US market leader in high-intent clinical skincare. During the period, it expanded its successful Flex offering through an exclusive partnership with HealthEquity’s marketplace opening a new route to tax-advantaged healthcare spend. Separately, Dermstore launched a pilot patient referral programme connecting online skincare discovery with in-clinic aesthetic treatments. Early results validate a significant opportunity to drive demand into partner practices and further monetise the customer journey.
· Our leading partnership with Google has resulted in THG Beauty’s launch of an AI on site assistant and upcoming participation in multiple category-leading pilot programmes over the next six months, keeping us at the forefront of how beauty is discovered and bought in an AI-first world. AI-powered customer tools on site (with AI Assistant launching in Q3) are driving materially higher conversion, with the pilot showing customers 7.5x more likely to purchase after use, positioning THG Beauty at the forefront of agentic commerce as we head into H2.
· THG Beauty continued to extend its leadership across emerging digital channels, with Lookfantastic maintaining the #1 multi-brand beauty retailer spot on UK TikTok Shop throughout 2026[12]. Revenue increased by +26% YoY, demonstrating the growing importance of social and creator-led commerce in acquiring and engaging beauty consumers.
Group
· Group revenue of £828.7m (H1 2025: £783.4m), +7.2% continuing CCY, with both THG Beauty and THG Nutrition in growth for the fourth consecutive quarter (+8.1% excluding THG Nutrition Asia).
· Group Adjusted EBITDA of £42.8m (H1 2025: £24.0m), a margin of 5.2% (H1 2025: 3.1%), +210bps.
· Group statutory operating loss (continuing) of £10.6m (H1 2025: £30.0m), improved due to substantially improved trading. Operating loss includes adjusted items of £5.6m (H1 2025: £5.3m), comprising £4.3m cash and £1.3m non-cash items (H1 2025: £1.7m cash, £3.7m non-cash) primarily related to restructuring costs as we continue to optimise the cost base.
· Cash flows in respect of capital expenditure were £10.0m (H1 2025: £10.5m), with net finance costs and lease repayments £14.2m (H1 2025: £16.3m) and £10.0m (H1 2025: £10.4m) respectively, leading to an improved free cash outflow of £70.9m (H1 2025: £77.7m) after the expected seasonal working capital profile. Net debt before lease liabilities of £329.7m (H1 2025: £321.4m) driven by the working capital outflow and cash adjusting items primarily related to restructuring and the final payment in respect of the demerger.
· Net debt of £329.7m includes one off payments in respect of the THG Ingenuity demerger. Without these payments, net debt before lease liabilities would total £262.8m (H1 2025: £311.6m). H1 2026 follows the usual seasonal working capital unwind. H1 2026 included a working capital investment within THG Nutrition following substantial increases in raw materials costs. This investment is expected to unwind across H2 2026 and H1 2027.
· Group statutory result for the period was a loss of £43.7m (H1 2025: profit of £76.3m); the prior year included a one-off net gain of £142.4m on discontinued operations recognised in connection with the demerger of THG Ingenuity, which did not recur in the current period.
· On 25 August 2026, Moody’s revised the Group’s Term Loan B rating to a B3 stable outlook from negative, in recognition of the ongoing strong trading performance and outlook for 2026 and 2027. THG’s Term Loan B continues to trade strongly near par, with strong momentum in trading performance achieved since the beginning of the year.
Outlook and guidance
· Full year expectations remain in line with consensus, underpinned by delivery of H1 Group revenue growth of +7.2%, H1 2026 Adjusted EBITDA of £42.8m with LTM Adjusted EBITDA of £95.4m providing confidence.
· The Group delivered c.5% revenue growth in July and August across its core brands and markets[13]. We expect consistent growth to continue through September, underpinned by a strong start to our advent calendar sales.
· Whilst Q3 earnings and cash generation are expected to be in line and robust, Q3 revenues have been impacted by the European heatwave slowing demand in part, but primarily by EU duty for THG Beauty[14] being applied since 1 July 2026 and own-brand beauty revenues phasing into Q4 and FY 2027. These factors we expect to be one-off in nature but which drive an expectation for the Group to deliver c.2% revenue growth in Q3.
· Given the strong performance through core brands and markets in Q3 (+5%) and certain revenue phasing into Q4, we expect Q4 to deliver 6% to 7% revenue growth. H2 trading confidence is underpinned by Q3 and Q4 revenues and EBITDA annual weighting in line with historical norms, with the Group in excellent position to execute its trading strategies.
· The Group remains focused on generating significant positive free cash flow and is on target to deliver £25m to £35m positive free cash flow for FY 2026, in line with consensus, acknowledging the investment in whey input costs which are expected to begin to reduce from their elevated levels into 2027.
· FY 2027 EBITDA progression, alongside improving working capital position in a lower whey cost environment, should lead to a material growth in positive free cash flow which, alongside receipt of the VAT claim (see detail below), results in FY 2027 net debt (excluding leases) of c.1 x leverage.
· Following the successful sale of Claremont Ingredients in August 2025 for £103m, several of the Group’s other non-strategic, standalone brands and assets have attracted bid interest. Should any sale occur at some point in the near future, it is expected that any proceeds would be higher than that for Claremont Ingredients, moving the Group from net debt to net cash positive for FY 2027.
· 2026 current trade and outlook re-enforce our confidence in the sustainability of the stated base line divisional EBITDA margins for THG Beauty and THG Nutrition of +6% and +12% respectively. Whilst THG Nutrition margins have yet to return to these historical and medium-term norms, the improving forward view on the whey cost coupled with the non-whey revenue diversification strategy underpins our view.
Whey commodity outlook
· There are early signs the price inflation challenges in the commodity whey market are easing. Whilst input costs significantly increased throughout H1 2026 and have done so further into Q3, key pricing indices have recently, albeit modestly, declined for the first time in more than two years with forward looking buying discussions into Q4 and FY 2027 indicating a marked improvement in the demand supply imbalance, although remaining high by historical levels.
· Through category and channel expansion, new product development and strict cost controls, THG Nutrition is well positioned to deliver a further significant uplift in profitability as whey commodity prices ease.
VAT update
· In early 2026, HMRC were refused permission to appeal the First-tier Tribunal decision on ‘Sunwarrior’ (Global by Nature Limited) protein powders, which ruled Sunwarrior protein powders qualified for zero-rated VAT.
· As previously communicated, the Group has submitted retrospective claims to HMRC. Successful claims would result in a cash payment of c.£60m on protein and collagen powders, with a further claim of c.£18m in respect of certain supplements.
· HMRC initially notified the Group that it would respond to its claims by late Spring 2026. HMRC has since notified the Group that it will not be in a position to provide a substantive update until the end of October 2026. The Group continues to explore options to accelerate the repayment process.
· Since January 2026, THG Nutrition has applied the VAT zero rate to certain products in accordance with the Tribunal’s decision in Global by Nature and has informed HMRC of the same.
