11 September 2025 

 

THG PLC

 

Interim results for the half-year ended 30 June 2025

 

 

H1 performance in line with guidance

 

Return to Group revenue growth in Q2 at +0.9%

 

Positive start to H2 with both businesses in growth

 

 

THG PLC ("THG" or the "Group"), announces its interim results for the half-year ended 30 June 2025 ("H1 2025").

 

Trading momentum from Q2 into Q3 continues to build positively, with the strategic model changes implemented across both THG Beauty and THG Nutrition throughout 2024 now bearing results. This momentum underpins confidence in full year and medium-term outlook.

               

The successful THG Ingenuity demerger at the start of H1 alongside the Q3 disposal of Claremont Ingredients to Nactarome Group for £103m, puts the Group on an accelerated path towards a net cash position, with the H1 2025 refinancing securing long-term committed facilities.

 

 

Key financial headlines

 

·     Group revenue: £783.4m (-2.6% CCY YoY[1])

 

·     Gross margin: 41.1%[2] (H1 2024: 42.6%), reflecting whey price impact. Gross margins expected to return to growth in H2

 

·   Adjusted EBITDA: £24.0m (H1 2024: £37.1m), in line with August 2025 trading update. The result was weighted towards Q2, with Q3 expected to be meaningfully higher, reflecting positive H1 exit momentum

 

·   Cash and available facilities of £279.4m following the H1 2025 refinancing which substantially reduced gross debt. This increases by c.£103m proforma for the received disposal proceeds of Claremont Ingredients

 

·    Strongest trading performance of FY 2025 so far in Q3, with guidance unchanged:

 

o  THG Beauty expected to deliver H2 revenue growth of +1.0% to +3.0% (H1 2025: -5.9%)

o  THG Nutrition expected to deliver H2 revenue growth of +10.0% to +12.0% (H1 2025: +3.1%)

 

 

Matthew Moulding, CEO of THG, commented:

 

"I'm really pleased at how THG has gained momentum throughout the first half and into Q3. A slower start to the year in Beauty, alongside record whey prices in Nutrition, initially held back performance, but we saw clear improvement in Q2, in particular supported by Myprotein offline retail and licensing sales.

 

"As a business we've reaped the benefits of the recent extensive strategic initiatives across the Group, including the global rebranding of Myprotein throughout 2024. I'm especially pleased with the response to the new positioning of the Myprotein brand, reflected in the exciting breadth of partnerships we're delivering with other global brand owners and a return to new customer growth. Our Beauty business particularly in the UK demonstrated impressive resilience, securing market share gains in Q2, with a growing loyalty base and successful new brand launches supporting a return to revenue growth in Q3.

 

"Meanwhile the refinancing of our long-term debt, as well as the sale of Claremont Ingredients, significantly reduces the Group's net debt position whilst highlighting the value of some of the lesser known, smaller businesses in THG.

 

"I'd like to thank everybody in the business for their dedication and focus during this transformative period which sets us up well for our most profitable and cash generative period in H2. Our momentum is positive and Q3 will be our strongest trading period of the year so far, underpinning our confidence in the outlook."

 

 

H1 2025 Group trading performance

 

£m	H1 2025	H1 2024	YoY Growth	Continuing[3] CCY[4] Change
THG Beauty	479.9	547.8	-12.4%	-5.9%
THG Nutrition	303.6	300.3	+1.1%	+3.1%
Total revenue	783.4	848.1	-7.6%	-2.6%
THG Beauty	190.4	223.4	-14.8%
THG Nutrition	131.8	138.0	-4.5%
Gross profit2	322.2	361.4	-10.8%
Gross profit margin	41.1%	42.6%	-150bps
THG Beauty	20.2	28.6	-29.4%
THG Nutrition	12.0	19.6	-38.8%
Adjusted EBITDA[5]	24.0	37.1	-35.3%
Adjusted EBITDA %	3.1%	4.4%	-130bps
Adjusted items - cash	1.7	5.3	-67.9%
Adjusted items - non-cash	3.7	9.4	-60.6%
Operating loss	(30.0)	(30.7)	-2.3%
Net debt[6]	(321.4)	(350.5)

 

All comparative figures are continuing CCY unless otherwise stated, all numbers and tables subject to rounding. H1 2024 has been restated to reflect the demerger of THG Ingenuity.

 

 

H1 2025 highlights

 

THG Beauty

 

·      Resilient retail trading with Q2 2025 UK growth at its highest rate since Q1 2024, supporting market share gains[7].

 

·    The effect of withdrawing from certain sales activity in Europe and Asia, as well as various non-underlying items such as asset disposals including the luxury portfolio, contributed over 900bps of the revenue decline in H1, with these factors mainly annualising in Q3 2025.

 

·    New brand launches driving growth and engagement, with over 70 launched year to date including Gucci Beauty. Revenue from new brands is expected to be +50% (vs 2024) with future personalisation developments supporting product discovery including integrating diagnostic technology and tailored product recommendations for specific looks and concerns.

 

·   LOOKFANTASTIC loyalty members continued to grow in H1, reaching 3.2m members, with consumer preference surging by +54% (Q1 to Q2[8]). This reflects the ongoing strategy to develop and deploy learnings from an evolved marketing measurement framework, focused on incremental efforts, demand generation and brand tracking to drive greater brand awareness and a higher quality of recurring customer.

 

·    Own brand lifecycle investment is ongoing during 2025 / 2026 to improve formulations, range and product appeal. This investment and portfolio rationalisation constrained growth within certain brands which will continue into H2 although to a lesser extent.

 

·   Medium-term target gross profit margins achieved in the period, slightly back from H1 2024 peak. Performance reflects change in business mix (towards retail) and UK market competitiveness.

 

·      Adjusted EBITDA reduced YoY (H1 2025: £20.2m, vs H1 2024: £28.6m), primarily reflecting the revenue and gross profit result, partially offset by distribution cost efficiencies from increased UK participation. Lifecycle investment and B2B order phasing (across own brands and manufacturing) also contributed to the YoY movement.

 

THG Nutrition

 

·     Revenue grew +3.1% to £303.6m (H1 2024: £300.3m), with Q2 the strongest growth since Q1 2022, driven by price as average selling prices ("ASPs") recovered to pre-rebrand levels. Growth has been broad-based with Myprotein recognised as the UK and Europe's No.1 Sports Nutrition brand based on sales across online and offline channels[9].

 

·     Myprotein activewear revenue participation increased as rebranded ranges sparked increased demand, with orders including activewear at a c.29% higher AOV.

 

·    Continued offline retail momentum with new retail partnerships (+4 UK and +18 US) and development of existing relationships through category, product and doors penetration. Strategic listings in the US include the launch of a curated range across Walmart stores, bringing US doors to c.8,400 (2024: 1,500).

 

·     Distribution of licensed products has expanded into new retail channels and touchpoints, with Myprotein continuing to forge innovative product and flavour partnerships with globally pre-eminent consumer food brands, including:

 

o  Q1 2026 launch of a multi-year deal to license out the Myprotein brand to a European leader in chilled and ambient food-to-go, sandwiches and salads, sold through major supermarkets, convenience shops, and food service outlets across the UK & Ireland.

 

o  Q4 2025 launch of a two-way product partnership with a global confectionery leader, licensing-in the most iconic confectionery flavours into Myprotein's products. A range of iconic confectionery products will also be available to purchase in the 'Brand Hub', recently added to the digital store to enable customers to discover major health and wellness and lifestyle brands, alongside Myprotein.

 

·     Myprotein's move into both the offline and licensing space will see c.45 million units sold via these channels during 2025 through >40,000 global doors by the end of the year, enabling Myprotein to reach millions of new customers and further amplify brand awareness.

 

·   Whey commodity prices were elevated YoY and have remained stable during H1, with strong global demand matching new supply capacity, therefore impacting gross margin (H1 2025: 43.4%, vs H1 2024: 45.9%).

 

·    Distribution and payroll efficiencies helped to offset marketing investment in support of new customer acquisition and retention, with adjusted EBITDA of £12.0m (H1 2024: £19.6m) primarily impacted by the gross margin decline.

 

Group

 

·     Group revenue of £783.4m, representing a reduction of -2.6%. The result was driven by a return to growth in THG Nutrition, offsetting a decrease in THG Beauty which was primarily a result of strategic model changes (disposal of certain operations, own brand investment and retail territory prioritisation).

 

·      Adjusted distribution costs as a percentage of revenue continued to decrease to 12.7% (H1 2024: 13.6%) driven by basket economics and territory mix (higher UK participation), and an increase in offline revenues.

 

·   Increased administrative costs as a percentage of revenue reflect a continued planned investment in marketing offsetting a managed reduction in salary and overhead costs. The Group's progression towards an evolved marketing measurement framework including media mix modelling and brand tracking is beginning to deliver improvements in brand awareness, customer reactivations and retention.

 

·    The Group recorded an adjusted EBITDA of £24.0m (H1 2024: £37.1m), with a margin of 3.1% (vs 4.4% H1 2024), primarily reflecting substantially higher whey pricing YoY in Nutrition.

 

·    Group operating loss (continuing) of £30.0m (H1 2024: £30.7m), including the impact of non-cash adjusting items totalling £3.7m (H1 2024: £9.4m).

 

·    Group statutory profit for the period of £76.3m (H1 2024: loss of £121.2m), includes the result from discontinued operations and the gain on the demerger of THG Ingenuity at the start of FY 2025.

 

·    Cash flows in respect of capital expenditure were £10.5m (H1 2024: £53.9m pre-demerger[10]), with net finance costs and lease repayments £16.3m (£13.0m) and £10.3m (£22.4m) respectively, leading to a free cash outflow of £77.7m (H1 2024: £126.7m outflow) after the expected seasonal working capital outflow.

 

·    With the support of our banking partners, in March 2025 we refinanced our long-term debt facilities including a €445m Term Loan B and £150m undrawn RCF until December 2029 and May 2029 respectively.

 

·    Net debt6 of £321.4m (H1 2024: £350.5m), reduces to c.£220m proforma for the Claremont Ingredients disposal. Following the refinancing and THG Ingenuity demerger, gross debt reduced by £374m.

 

 

Outlook and guidance

 

·      Confidence in delivery is growing ahead of the peak trading period, with:

 

o  THG Beauty expected to deliver H2 revenue growth of +1.0% to +3.0% (H1 2025: -5.9%)

o  THG Nutrition expected to deliver H2 revenue growth of +10.0% to +12.0% (H1 2025: +3.1%)

 

·    As we now enter peak trading, THG Beauty has returned to growth, helped in part by annualising the impact of deprioritising selected low-margin European and Asia territories, alongside strengthening home market demand. Advent season has been the strongest launch in history across LOOKFANTASTIC and Cult Beauty edits.

 

·    To drive market share gains across both D2C and offline retail, Myprotein will limit price increases in H2 2025, further supporting growth in new customers and enabling an acceleration of its installed base in global offline retail.

 

·     Myprotein's structurally advantaged, vertically integrated business model means it is now driving revenue and gross margin growth in H2 (vs H1). Any pricing relief in whey protein is expected to be gradual.

 

·    Guidance remains in line with the trading update published August 2025[11] with LTM[12] adjusted EBITDA to 30 June 2025 of £70.3m (inclusive of c.£5.0m of discontinued losses which will annualise out across H2) supporting the full year outturn.

 

·     Supported by cash generation, net leverage and borrowing costs will continue to reduce over the medium-term with the Group making further progress towards a neutral net cash / net debt position, in line with its capital allocation strategy.

 

Analyst and investor conference call

 

THG will today host a conference call and webcast for analysts and investors at 9.00am (UK time) via the following links:

 

To register for the webcast, please use the below link:

 

https://stream.brrmedia.co.uk/broadcast/68aedc4233d75f0013a0948c

 

To ask questions, you must dial in via conference line using the below details:

·      USA Local: +1 786 697 3501

·      USA Toll Free: 866 580 3963

·      UK-Wide: +44 (0) 33 0551 0200

·      UK Toll Free: 0808 109 0700

·      Password: THG Interim Results

 

 

 

For further information please contact:

 

Investor enquiries:
Kate Grimoldby, Director of Investor Relations and Strategic Projects	Investor.Relations@thg.com
Media enquiries:
Sodali & Co - Financial PR adviser	Tel: +44 (0) 20 7250 1446
Russ Lynch / Sam Austrums / Louisa Henry	thg@sodali.com
THG PLC	media-enquiries@thg.com

ENDS

 

Notes to editors

THG PLC is a global e-commerce group headquartered in Manchester, UK, operating through two leading consumer businesses: THG Beauty and THG Nutrition.

THG Beauty operates prominent online platforms including Lookfantastic, Dermstore and Cult Beauty, offering a valued route to market for over 1,000 third-party brands, alongside a specialist portfolio of owned brands.

THG Nutrition, led by Myprotein, the world's largest online sports nutrition brand, spans multiple health and wellness categories, delivering its products both directly to consumers and through strategic offline partnerships worldwide.

Cautionary statement

Certain statements included within this announcement may constitute "forward-looking statements" in respect of the group's operations, performance, prospects and/or financial condition. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words and words of similar meaning as "anticipates", "aims", "due", "could", "may", "will", "should", "expects", "believes", "intends", "plans", "potential", "targets", "goal" or "estimates". By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting from new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares or other securities of the Company. Past performance cannot be relied upon as a guide to future performance and persons needing advice should consult an independent financial adviser. Statements in this announcement reflect the knowledge and information available at the time of its preparation.

Chief Financial Officer's Review

Total Group overview[13]

H1 2025	THG Beauty	THG Nutrition		Total H1 2025
£m			Central
Revenue	479.9	303.6	-	783.4
Adjusted gross profit	190.4	131.8	-	322.2
Margin	39.7%	43.4%	-	41.1%
Adjusted EBITDA	20.2	12.0	(8.2)	24.0
Margin	4.2%	3.9%	-	3.1%

 

H1 2024 (Restated)[14]	THG Beauty	THG Nutrition		Total H1 2024
£m			Central
Revenue	547.8	300.3	-	848.1
Adjusted gross profit	223.4	138.0	-	361.4
Margin	40.8%	45.9%	-	42.6%
Adjusted EBITDA	28.6	19.6	(11.0)	37.1
Margin	5.2%	6.5%	-	4.4%

 

The demerger of THG Ingenuity completed on 2 January 2025, the results above therefore have been restated to report only THG Beauty, THG Nutrition and central costs. Financial disclosure has been enhanced to include gross margin by business.

 

THG Beauty

 

THG Beauty reported revenue of £479.9m (H1 2024: £547.8m), -12.4% YoY, -5.9% continuing CCY, driven by:

 

·    Discontinued categories and non-core operations: The exit of Australian beauty and subscription box services in Europe, as well as luxury clothing, were the biggest drivers of the revenue decline accounting for 530bps of the YoY movement. Currency accounted for a further 120 bps resulting in -5.9% continuing CCY.

 

·    Lower margin territories: The next biggest contributor was the strategic decision to withdraw from lower margin territories in Asia and Europe which impacted growth by c. 260bps. The YoY revenue drag from these strategic exits is expected to annualise within Q3 2025 onwards.

 

·    Own-brand portfolio: lifecycle investment is ongoing in own brands during 2025 / 2026 to improve formulations, range and product appeal. This investment and portfolio rationalisation constrained revenue growth within certain brands which will continue into H2 although to a lesser extent.

 

·    Geographic mix: the UK market traded resiliently. The US retail market faced challenges due to cautious market sentiment in H1 stemming from tariff announcements. While not expected to materially impact US retail (primarily Dermstore) this contributed to overall consumer uncertainty alongside, although to a lesser extent, foreign exchange headwinds on the US Dollar.

 

·     Investing in the customer proposition: in H1 2025, we have maintained a focus on driving brand awareness which drove UK market share growth in Q2.

 

Adjusted gross profit for the period was £190.4m (H1 2024: £223.4m) with a margin of 39.7% (H1 2024: 40.8%), in line with medium-term targets. THG Beauty margins have historically been consistent between c38% - c40%, with H1 2024 particularly strong. The gross margin movement YoY is driven by a combination of factors, but principally own-brand sales and US retail sales participation, with those two areas historically driving the highest margins.

 

Adjusted EBITDA for the period was £20.2m (H1 2024: £28.6m). The reduction in EBITDA was as a result of the revenue movements set out above, alongside the impact of the lifecycle investment ongoing during 2025/26 across our own brand portfolio to improve formulations, range and product appeal which accounted for the majority of the year-on-year reduction in adjusted EBITDA. The portfolio will benefit over the medium-term following these investment decisions.

 

THG Nutrition

 

THG Nutrition reported revenue of £303.6m (H1 2024: £300.3m), representing growth of +1.1% YoY, +3.1% continuing CCY. This performance highlights the progress of our offline strategy combined with a disciplined approach to pricing supporting improved online sales.

 

The core drivers of our revenue performance were:

 

·    Offline channel expansion: our strategy to expand into offline channels is delivering growth. H1 2025 saw major new listings across Europe and continued momentum in Asia alongside expansion in the US.

 

·   Brand licensing and partnerships: licensing income continued to grow, leveraging the strength of the Myprotein brand. New products were introduced, building on the success of previous launches and enhancing brand recognition in the offline market.

 

·    Digital growth: pleasing performance across third-party e-commerce channels, including Amazon and TikTok Shop reflecting shifting consumer behaviours.

 

·      ASPs: with the rebrand behind us, we have diligently managed our pricing to reflect whey price inflation, increasing ASPs.

 

·    An improving D2C online sales performance against the prior year which was largely pricing led offsetting a reduction in Asia participation due to intentional strategy to prioritise margins in the region.

 

Adjusted gross profit margin was 43.4% (H1 2024: 45.9%). Adjusted EBITDA was £12.0m (H1 2024: £19.6m), with a margin of 3.9% (H1 2024: 6.5%). This was principally the result of two significant external headwinds:

 

·    Record whey prices: the primary driver was the substantial YoY increase in the cost of whey, a key commodity. Global whey prices have remained at record highs, creating a significant margin impact during the period.

 

·     Currency fluctuations: due to movements in the Japanese Yen, which have compounded for the last four years, the costs of undertaking business in Japan has increased substantially. Longer-term domestic supply is the primary solution, with short-term margin protection strategies resulting in lower orders and active customers.

 

Central costs

 

Central costs totalling £8.2m (H1 2024: £11.0m) relate primarily to the PLC Board remuneration, insurance, professional services fees, Group finance, Corporate Development and governance costs that are not recharged to the businesses as they principally relate to the operations of the PLC holding company. The costs have reduced YoY reflecting the cost saving plans implemented across the Group.

 

Geographical review of revenue

The following table provides an analysis of revenue by region (by customer location):

 

	H1 2025 £m	H1 2024 £m
			Movement
UK	389.8	388.0	+0.5%
US	141.3	179.0	-21.1%
Europe	167.0	173.6	-3.8%
Rest of the world	85.4	107.4	-20.5%
Revenue	783.4	848.1

 

The UK continues to be the largest market for the Group and both businesses at 49.8% of revenue (H1 2024: 45.8%). Discontinued categories - principally the luxury business that was sold in September 2024 - reduced UK sales by c. £15m year-on-year. This reduction was more than offset by sales growth in both THG Beauty and THG Nutrition with the latter delivering over 10% UK sales growth in the first half, whilst THG Beauty delivered low single digit sales growth with momentum improving across the period.

 

The US remains a key market for the Group, despite the recent headwinds experienced, with around one third of the YoY revenue reduction an active result of discontinuing categories. Own-brand beauty performance and challenging conditions in the beauty retail market given tariff disruption also impacted the US.

 

Europe and the rest of the world both saw YoY revenue decline driven by the discontinuation of certain markets within Europe and Asia for THG Beauty, and the exchange rate on the Japanese Yen (historically one of THG Nutrition's largest markets) necessitating margin protection strategies which has constrained orders and active customers.

 

Group financial review

 

Statutory results

 

	Six months ended 30 June 2025 £m	Six months ended 30 June 2024 (restated) £m
Continuing operations
Revenue	783.4	848.1
Cost of sales	(462.2)	(496.9)
Gross profit	321.2	351.1
Distribution costs	(104.0)	(116.6)
Administrative costs	(247.3)	(265.2)
Operating loss	(30.0)	(30.7)
Finance income	2.9	5.3
Finance costs	(39.5)	(31.0)
Loss before tax	(66.7)	(56.3)
Income tax credit/(charge)	0.6	(6.4)
Loss for the financial period from continuing operations	(66.1)	(62.7)
Discontinued operations
Profit / (loss) for the financial period from discontinued operations, net of tax	142.4	(58.6)
Profit / (loss) for the financial period	76.3	(121.2)

H1 2024 restated for the impact of THG Ingenuity being classified as a discontinued operation.

 

Adjusted profit measures with reconciliation to statutory result

 

Management have presented alternative performance measures to provide stakeholders with additional helpful information on the performance of the business. These alternative performance measures are consistent with how the business performance is monitored and reported through internal Management reporting to the Board. To ensure that stakeholders can reconcile this to the statutory information presented, the below table has been included:

 

			Amortisation and depreciation £m
	Management adjusted view £m	Adjusted items £m		Share based payments £m
					Statutory £m
H1 2025
Revenue	783.4	-	-	-	783.4
Cost of sales	(461.2)	(0.7)	(0.4)	-	(462.2)
Gross profit	322.2	(0.7)	(0.4)	-	321.2
Distribution costs	(99.2)	(0.4)	(4.4)	-	(104.0)
Administrative costs	(199.1)	(4.2)	(41.1)	(2.9)	(247.3)
Operating profit/(loss)	24.0	(5.3)	(45.8)	(2.9)	(30.0)

 

			Amortisation and depreciation £m
	Management adjusted view £m	Adjusted items £m		Share based payments £m
					Statutory £m
H1 2024
Revenue	848.1	-	-	-	848.1
Cost of sales	(486.8)	(8.9)	(1.3)	-	(496.9)
Gross profit	361.3	(8.9)	(1.3)	-	351.1
Distribution costs	(115.3)	(0.9)	(0.4)	-	(116.6)
Administrative costs	(208.9)	(4.9)	(42.9)	(8.5)	(265.2)
Operating profit/(loss)	37.1	(14.7)	(44.6)	(8.5)	(30.7)

 

Revenue

 

Group statutory continuing revenue decreased by -7.6% to £783.4m (H1 2024: £848.1m) primarily driven by the strategic decision to exit non-profitable businesses and territories, the performance of the own-brand portfolio and challenging conditions in the US retail market across THG Beauty. This decline was partially offset by positive performance in other areas, including within THG Nutrition; substantial progress from offline channel expansion across Europe and Asia, continued growth in brand licensing income, and an improving D2C online sales performance.

 

Gross profit

 

Adjusted gross profit was £322.2m (H1 2024: £361.3m) equating to an adjusted margin of 41.1% (H1 2024: 42.6%), a reduction of 150bps compared to 2024.

 

This reflects a mixed performance across the two businesses. THG Nutrition continued to be impacted by significant external headwinds, primarily record-high whey commodity prices and adverse currency effects from the sustained weakness of the Japanese Yen. THG Beauty delivered a performance in line with historical trends, following a strong comparative period in H1 2024.

 

Gross profit on a statutory basis totalled £321.2m (H1 2024: £351.1m) and 40bps reduction in margin of 41.0% (H1 2024: 41.4%). Adjusted items impacting gross profit have reduced significantly from £8.9m in the prior half to £0.7m in H1 2025.

 

Distribution costs

 

Adjusted distribution costs of £99.2m (H1 2024: £115.3m, 90bps improvement) reflect continual efficiencies and improved rates and mix in the half, following the discontinuation of sales to territories further from our distribution network (which consequently had a higher distribution cost).

 

Distribution costs on a statutory basis reduced to £104.0m (H1 2024: £116.6m), being 13.3% (H1 2024: 13.8%) of revenue. This was expected following the subleases entered into post demerger giving rise to depreciation and aided by lower adjusted items YoY.

 

Administration costs

 

Adjusted administrative costs as a percentage of revenue totalled 25.4% of revenue (H1 2024: 24.6%). During the half, the Group has focused on cost rationalisation to right-size the cost base of the business post demerger; this resulted in reductions across administrative costs, albeit partially offset by the national insurance and national minimum wage changes. While administrative costs reduced on an absolute basis, driven by cost savings which more than offset inflationary pressures, the percentage of revenue increased YoY. The primary driver other than the inflation in national insurance has been strategic investment in marketing costs.

 

Administrative costs on a statutory basis totalled £247.3m (H1 2024: £265.2m), which have decreased due to the implementation of cost rationalisation plus a reduction in adjusted items.

 

Adjusted EBITDA and Adjusted EBITDA margin	H1 2025 £m	H1 2024 £m
Reconciliation from operating loss to Adjusted EBITDA
Operating loss	(30.0)	(30.7)
Adjustments for:
Amortisation	8.6	10.3
Amortisation of acquired intangibles	21.7	23.5
Depreciation	15.5	10.7
Adjusted items - cash	1.7	5.3
Adjusted items - non-cash	3.6	9.4
Share-based payments	2.9	8.5
Adjusted EBITDA	24.0	37.1
Adjusted EBITDA %	3.1%	4.4%

 

Adjusted items

 

In order to understand the underlying performance of the Group, certain costs included within cost of sales, distribution and administrative have been classified as adjusted items. The adjusted items have decreased significantly YoY totalling £5.3m (H1 2024: £14.7m).

 

The adjusted items include the loss on discontinued categories as the Group finalised its strategic review of loss-making non-core operations, alongside restructuring costs, irrecoverable costs associated with a legal case and impairment of assets no longer in use. For full details on each category of adjusted item see note 3 to the financial statements.

 

Depreciation and amortisation

 

Statutory depreciation and amortisation costs were £15.5m and £30.3m respectively (H1 2024: £10.7m and £33.8m). Included within amortisation is £21.7m (H1 2024: £23.5m) of amortisation on acquired intangibles (see below) relating to historic acquisitions.

 

Depreciation has increased due to the addition to right-of-use assets reflecting the subleases entered into following the demerger. Amortisation has remained largely consistent. Please note this commentary is covering the continuing basis and depreciation and amortisation costs were considerably higher in the now demerged Ingenuity business.

 

Amortisation on acquired intangibles £21.7m (H1 2024: £23.5m)

 

When an acquisition is made, the accounting standards (IFRS 3: Business Combinations) require that an exercise is undertaken to value any brands, trade names or other intellectual property (such as customer lists). Following recognition of these assets, they are amortised over a period of 2-20 years.

 

Given the number of significant acquisitions made in recent years, primarily within THG Beauty, we consider this amount should be viewed separately to other amortisation to ensure comparability to those who undertook fewer or no acquisitions. This is a non-cash cost.

 

Other amortisation, outside of amortisation on acquired intangibles remained largely consistent YoY.

 

Adjusted EBITDA and operating profit/(loss)

 

Adjusted EBITDA totals £24.0m (H1 2024: £37.1m). The reduction YoY is a result of the above-mentioned factors notably, the portfolio lifecycle investment in THG Beauty's own brand portfolio and the impact of continued high whey prices and adverse currency movements from the Japanese Yen within THG Nutrition.

 

The Group incurred an operating loss in the period of £30.0m (H1 2024: £30.7m). This is driven by the reduction in EBITDA offset by the reduction in adjusted items from £14.7m in H1 2024 to £5.3m in H1 2025.

 

Finance costs net of finance income

 

Finance costs net of finance income has increased to £36.7m (H1 2024: £25.7m) as a result of the refinance in H1 2025 and higher interest rates. The inherent cost increase is partially offset by a reduction in interest expense following the reduction in borrowings.

 

Loss before tax from continuing operations and tax rate

 

Loss before tax from continuing operations was £66.7m (H1 2024: £56.3m). The effective tax rate is 0.9% (H1 2024: -11.3%), based on a total tax credit of £0.6m (H1 2024: tax charge £6.4m). The effective tax rate differs from the average statutory rate of 25%. This is primarily due to a movement in deferred tax not recognised (-22.9%), and expenses not deductible (-0.9%). The non-deductible expenses principally comprise of the share-based payments charge and non-qualifying depreciation.

 

At 30 June 2025, the total net deferred tax liability is £54.0m (H1 2024: £53.4m). The deferred tax liability in respect of intangible assets recognised on consolidation was £112.8m (H1 2024: £123.8m). The deferred tax asset in respect of tax losses recognised was £34.2m (H1 2024: £26.8m). There were £56.0m of unrecognised deferred tax assets in respect of tax losses at the balance sheet date. This non-recognition has an impact on the income statement tax charge, and this is one of the primary reasons for the effective tax rate being below the statutory rate.

 

Discontinued operations

 

On 2 January 2025, the Group successfully completed the previously announced demerger of THG Ingenuity into a stand-alone, independent private company. THG Ingenuity has been recognised as a discontinued operation with H1 2024 results being restated to reflect this.

 

The profit on discontinued operations totalled £142.4m (H1 2024: loss of £58.6m) this Includes the gain on distribution (see more detail within note 6.1 of the financial statements). The gain is calculated as the difference between the fair value and the book value of its net assets.

 

Profit / (loss) for the financial period

Total profit for the financial period of £76.3m (H1 2024: loss of £121.2m) culminating the results of continuing and discontinued operations as explained previously.

 

Earnings per share

 

Earnings per share were £0.06 per share (H1 2024 loss of £(0.08) per share). Loss per share on continuing operations was a loss of £(0.05) per share (H1 2024: loss of £(0.04) per share).

 

Cash flow statement

 

	H1 2025 £m	H1 2024 (Pre demerger[15]) £m
Adjusted EBITDA	24.0	48.8
Working capital movements	(59.7)	(74.4)
Tax paid	(1.2)	(1.3)
Adjusted items	(3.6)	(10.5)
Net cash generated from operating activities	(40.5)	(37.4)
Purchase of property, plant and equipment	(2.5)	(16.8)
Purchase of intangible assets	(8.0)	(37.1)
Interest paid net of interest received	(16.3)	(13.0)
Lease repayments	(10.4)	(22.4)
Free cash flow	(77.7)	(126.7)
Disposal of discontinued categories and non-core operations	0.7	-
Repayments of bank borrowings	(181.7)	(1.8)
Proceeds from issuance of ordinary shares net of fees	21.8	-
Proceeds from the issue of convertible loans	67.5	-
Payments on distribution	(9.8)	-
Net decrease in cash and cash equivalents	(179.2)	(128.5)
Cash and cash equivalents at the beginning of the period	308.6	416.2
Cash and cash equivalents at the end of the period	129.4	287.7

 

The H1 2025 cash flow reflects THG PLC post demerger. This includes lighter capital expenditure with leases, capex and financing costs all in line with guided run rates. The H1 2024 cash flow includes THG Ingenuity as this was prior to the demerger. As such these are not like-for-like comparisons. The free cash flow in H1 2025 has therefore improved by £49.0m, as expected following the demerger of Ingenuity.

 

Free cash flow for the total Group was an outflow of £77.7m (Pre demerger H1 2024: outflow of £126.7m). This includes £10.5m (Pre demerger H1 2024: £53.9m) of capital expenditure, cash adjusting item payments of £3.6m (H1 2024: £10.5m), net interest of £16.3m (Pre demerger H1 2024: £13.0m) and lease repayments totalling £10.4m (Pre demerger H1 2024: £22.4m). The working capital profile is in line with expectations, with the cyclical nature of the business resulting in a working capital outflow in H1 each year, which reverses in H2.

 

There was a decrease in cash and cash equivalents for the period of £179.2m (Pre demerger H1 2024: £128.5m). The key driver for the decrease is the repayment of bank borrowings totalling £181.7m following the successful refinancing in the period. The remaining cash outflows as described above were offset by the equity placing which completed in March 2025 raising proceeds net of costs of £89.3m (both equity and convertible loan which will convert to equity in H2 2025).

 

The Group ended the period with c.£279m cash and available facilities at the end of the period. £89.0m of cash left the group with THG Ingenuity on 2 January 2025. The undrawn RCF totalled £150m.

 

There has been a reduction in the cash spend on capital expenditure and lease payments in H1 2025 following demerger reflecting the simplified Group with less leases and lower capital spend requirements.

 

Cash flows in respect of adjusting items largely relate to restructuring and the unwind of accrued costs which are not expected to recur.

 

Balance sheet

 

Cash and cash equivalents and net cash before lease liabilities

 

	30 June 2025 £m	30 June 2024 £m	31 December 2024 £m
Loans and other borrowings	(457.9)	(640.5)	(604.6)
Lease liabilities	(143.5)	(334.7)	(41.4)
Cash and cash equivalents	129.4	287.7	308.6
Sub-total	(472.0)	(687.5)	(337.3)
Adjustments:
Retranslate debt balance at swap rate where hedged by foreign exchange derivatives	7.0	2.3	(8.3)
Net debt	(464.9)	(685.3)	(345.6)
Net debt before lease liabilities	(321.4)	(350.5)	(304.3)
Proforma net debt before lease liabilities including proceeds from the sale of Claremont Ingredients	(221.4)	n/a	n/a

 

At 30 June 2025, the Group held £129.4m in cash and cash equivalents (H1 2024: £287.7m, FY 2024 £308.6m).

 

As part of its ongoing strategy to reduce gross debt, the Group completed a refinancing of its debt facilities to 2029. The reduction in the Term Loan A and Term Loan B were partially offset by fees associated with the refinancing and a new asset-backed financing facility (net £182.6m reduction in borrowings from 31 December 2024).

 

The decrease in net debt YoY has been driven by the reduction in borrowings following the refinancing outlined above and the associated equity raise, alongside a reduction in lease liabilities. The majority of the Group's material leases left the Group as part of the demerger, as they relate to THG Ingenuity's operations.

 

Non-current assets

 

Property, plant and equipment totalled £60.9m (H1 2024: £263.4m, 31 December 2024: £64.9m). Intangible assets totalled £857.4m (H1 2024: £1,185.3m, 31 December 2024: £958.3m). Movements compared to H1 2024 are driven by the demerger. Movements since 31 December 2024 are a result of the depreciation and amortisation charge (see earlier).

 

Right-of-use-assets totalled £130.6m (H1 2024: £286.8m, 31 December 2024: £29.3m). Movements compared to H1 2024 are driven by the demerger. The increase compared to the year end relates primarily to the subleases entered into as part of the demerger as set out in the shareholder circular.

 

Going concern

 

The Group remains in a strong cash position following the demerger with cash and cash equivalents totalling £129.4m (H1 2024: £287.7m, 31 December 2024 £308.6m). This is before the proceeds from the sale of Claremont Ingredients of £103m which has been received in early September 2025.

 

At 30 June 2025, the Group had a total of £150m in undrawn facilities.

 

Net debt before lease liabilities totalled £321.4m (H1 2024: net debt before lease liabilities £350.5m, 31 December 2024: £304.3m).

 

In making their assessment of going concern, the Directors reviewed financial projections until 30 September 2026 and concluded that the Group was a going concern.

 

Stress test scenarios were modelled to take into account severe but plausible impacts of a combination of the principal risks occurring including reducing sales for the two key businesses to levels significantly below historic actuals and current budgets. A reverse stress test was also separately modelled. The results of stress testing demonstrated that the combination of mitigating actions available including existing cash resources, level of discretionary spend and ability to utilise the RCF were sufficient for the Group to withstand such impacts.

 

Responsibility statement of the directors in respect of the condensed interim financial statements

 

We confirm that to the best of our knowledge:

 

·     the condensed set of financial statements for the half year ended 30 June 2025 has been prepared in accordance with UK adopted IAS 34 Interim Financial Reporting;

 

·      the interim management report includes a fair review of the information required by:

 

o  DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the 2025 financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

 

o  DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

 

Matthew Moulding                                                                                                             Damian Sanders

Chief Executive Officer                                                                                                       Chief Financial Officer

10 September 2025                                                                                                           10 September 2025