THG reports strong end to 2025

(Sharecast News) - THG reported a strong finish to 2025 on Tuesday, with fourth-quarter group revenue growth of 7.0% on a constant currency basis, the strongest performance of the year, driven by outperformance in THG Beauty. Group revenue for the second half rose 6.7% year-on-year, around 14% ahead of the top end of the company's previous guidance range of 3.9% to 5.9%.

The FTSE 250 company said it entered 2026 with high confidence in trading momentum across both THG Beauty and THG Nutrition following approximately 8% revenue growth over November and December.

In the fourth quarter, THG generated total revenue of £527.4m, up 7% on a constant currency basis, while full-year revenue rose 2.3% to £1.72bn, marking the group's first year of growth since 2021 and a recovery from a 2.5% decline in the first half.

THG said foreign exchange headwinds eased through the year, with yen and dollar pressures largely offset by euro strength by the final quarter.

Disposals and discontinued activities reduced reported full-year and fourth-quarter growth by 330 and 290 basis points respectively, while adjusted EBITDA expectations for the 2025 financial year remained unchanged and in line with market consensus.

THG Beauty delivered fourth-quarter revenue of £370.2m, up 6.4% on a constant currency basis, representing its strongest quarterly growth since the final quarter of 2021 and well ahead of guidance.

Full-year THG Beauty revenue declined 5.4% on a reported basis but rose 0.3% in constant currency terms.

Performance was led by Lookfantastic, which grew 16.2% in the UK and Ireland, alongside broad-based category growth in cosmetics and skincare.

The group said the sale of its luxury portfolio and other asset disposals, as well as a strategic withdrawal from certain European and Asian activities, accounted for most of the revenue drag during the year and have now largely annualised.

THG Nutrition reported fourth-quarter revenue of £157.2m, up 8.5% on a constant currency basis, with full-year growth of 6.2%.

Excluding Asia, fourth-quarter growth was 12.2%, reflecting pricing actions and expansion into adjacent categories including offline retail, activewear and creatine.

The business continued to diversify its sales mix amid elevated whey prices, while the sale of Claremont Ingredients in the third quarter reduced reported full-year growth by around 50 basis points.

Myprotein maintained its position as the number one sports nutrition brand in the UK and Europe, holding a 25% share of the UK online market, with subscription revenues more than doubling year-on-year.

The group ended the year with a highly liquid balance sheet, holding more than £330m of cash and available facilities.

Management said the fourth quarter built on momentum seen earlier in the year, with the group delivering its strongest sequential revenue growth as trading discipline and operational focus supported performance.

"We finished 2025 on a high with our best quarter of the year thanks to a strong November and December period," said CEO Matthew Moulding.

"In THG Beauty, our strategy to focus on core categories and territories is delivering clear results, with Lookfantastic UK achieving exceptional growth."

He added that THG Nutrition had delivered its fourth consecutive quarter of revenue growth, driven by the strength of the Myprotein brand and the company's "successful offline global expansion strategy," concluding that the group entered the new year "with strong trading momentum and a clear focus on continuing to deliver quality, value and newness for our customers."

At 0959 GMT, shares in THG were up 3.92% at 49.8p.

Reporting by Josh White for Sharecast.com.