10 September 2026

 

THG PLC

 

Interim results for the half-year ended 30 June 2026

 

Group revenue growth of +7.2%, ahead of guidance

 

H1 Adjusted EBITDA of £42.8m, +109%[1] YoY and ahead of guidance of at least £40m

 

Strongest H1 free cash flow delivery since 2021

 

Full year revenue, Adjusted EBITDA and free cash flow in line with consensus[2]

 

THG PLC ("THG" or the "Group"), announces its interim results for the half-year ended 30 June 2026 ("H1 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	H1 2026	H1 2025	YoY Growth[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.

 

Analyst and investor conference call

 

THG will today host a conference call and webcast for analysts and investors at 8.30am (UK time). 

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

 

https://brrmedia.news/THG_HY26

 

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

·      UK-Wide: +44 (0) 33 0551 0200

·      UK Toll Free: 0808 109 0700

·      USA Local: +1 786 697 3501

·      USA Toll Free: 866 580 3963

·      Password: THG - HY Results

 

For further information please contact:

 

Investor enquiries:
Jordan Foster, Deputy Chief Financial Officer	i[email protected]
Media enquiries:
Sodali & Co - Financial PR adviser	Tel: +44 (0) 20 7250 1446
Russ Lynch/Sam Austrums	[email protected]
THG PLC	[email protected]

ENDS

Notes to editors

THG PLC is a global e-commerce group and brand owner headquartered in Manchester, UK, which operates 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.

 

Appendix

Quarterly continuing constant currency revenue growth rate

£m	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026
THG Nutrition	-5.7%	-9.4%	-10.5%	-9.4%	+0.3%	+6.2%	+10.0%	+9.5%	+8.8%	+9.5%
THG Beauty	+13.6%	+3.5%	+3.2%	+0.8%	-9.8%	-2.1%	+4.2%	+6.3%	+5.8%	+6.0%
Total Revenue	+5.5%	-1.5%	-2.0%	-2.5%	-6.1%	+0.9%	+6.3%	+7.2%	+7.0%	+7.4%

 

Quarterly reported growth rate

£m	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026
THG Nutrition	-12.2%	-15.0%	-14.0%	-13.1%	-2.3%	+4.5%	+9.3%	+9.0%	+8.1%	+8.3%
THG Beauty	+3.9%	-2.5%	-3.1%	-8.0%	-15.3%	-9.6%	-1.2%	+2.1%	+2.4%	+5.9%
Total Revenue	-2.6%	-7.3%	-7.1%	-9.5%	-10.6%	-4.7%	+2.4%	+4.1%	+4.6%	+6.8%

 

Quarterly reported revenue

£m	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026
THG Nutrition	151.3	149.1	134.5	145.4	147.8	155.8	147.0	158.6	159.8	168.7
THG Beauty	268.9	278.8	261.3	362.2	227.8	252.0	258.2	369.8	233.3	266.9
Total Revenue	420.2	427.8	395.7	507.6	375.6	407.8	405.2	528.3	393.1	435.7

 

Chief Financial Officer's Review

H1 2026 represents a period of structural margin improvement. Our financial performance reflects the deliberate strategic actions taken over the past 24 months to optimise our cost base and evolve our operating models. Group Adjusted EBITDA increased to £42.8m, driven by margin enhancement in THG Nutrition and robust operational discipline in THG Beauty, while our statutory operating loss was reduced by 65% to £10.6m.

Total Group overview[15]

H1 2026	THG	THG Beauty		Total H1 2026
£m	Nutrition		Central
Revenue	328.5	500.2	-	828.7
Adjusted gross profit	146.6	194.1	-	340.7
Margin	44.6%	38.8%	-	41.1%
Adjusted EBITDA	26.0	25.0	(8.3)	42.8
Margin	7.9%	5.0%	-	5.2%

 

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

 

THG Nutrition

THG Nutrition reported revenue of £328.5m (H1 2025: £303.6m), growth of +8.2% YoY, (+9.2% continuing CCY, excluding Asia +12.1%) in H1 2026 as the planned transition to a partnership-led licensing model in the region continues to progress.

Revenue growth was driven by:

·      Continued growth across marketplace channels as consumers increasingly purchase health and wellness products through third-party platforms, supporting both customer acquisition and brand reach.

·      Further progress in offline and licensing channels, with deeper strategic partnerships, new product launches and increasing brand awareness.

·      Strategic pricing actions and product reformulations implemented during Q2 in response to sustained elevated raw material costs. Whilst pricing-led growth impacted volume as anticipated, innovation across the range and the continued expansion of higher-margin growth categories led to customer engagement remaining strong, with revenue from returning customers increasing to 83% (H1 2025: 82%) alongside increased average order values, supported by increased cross category participation and basket size, with orders including activewear delivering a 30% increase in order value.

·      Manufacturing was broadly stable, whilst the adoption of zero-rating VAT for selected protein and collagen products from January 2026 also contributed.

Adjusted gross profit for the period was £146.6m (H1 2025: £131.8m), representing a gross margin of 44.6% (H1 2025: 43.4%), an improvement of 120bps.

This improvement was delivered against a continued inflationary commodity backdrop. Whey protein costs increased further during H1 2026 and remained materially above historical levels, driven by sustained global demand for protein products and the continued expansion of protein consumption beyond traditional sports nutrition consumers.

In response, THG Nutrition has continued to execute a structural strategy focused on channel and product diversification, new product innovation and pricing discipline. New product development has included new and revised formulations designed to offer more choice for different consumer wants and occasions, while investment has accelerated behind higher margin-growth categories including creatine, hydration, collagen and activewear. Together, these initiatives have begun to reduce the sensitivity of the business to whey price movements and improving the quality of earnings generated.  The continued expansion of these categories is expected to provide further mitigation against a backdrop of higher whey cost inflation anticipated in H2.

Whilst H2 is forecast to see yet further whey material cost increases relative to H1, the Group has started to secure forward pricing for Q4 and are negotiating whey requirements into next year at levels notably below the current spot price which management believes indicate signs of easing prices into 2027.

As a result, THG Nutrition has reduced the gap between prevailing commodity costs and the historical profitability profile of the Myprotein business. Supported by its vertically integrated manufacturing, management believes the business is increasingly well positioned to deliver a progressive recovery in gross margin and Adjusted EBITDA margin to the medium-term guidance of c.12%. Particularly as whey commodity markets normalise, and the product and channel diversification continues to progress.

Adjusted EBITDA for the period was £26.0m (H1 2025: £12.0m), representing a margin of 7.9% (H1 2025: 3.9%), an improvement of 400bps. Excluding the disposal of Claremont Ingredients, EBITDA margin improved by 510bps YoY.

This significant improvement reflects the combined impact of pricing actions, product mix, continued growth in higher-margin categories, operational leverage and the increasing contribution from marketplaces, licensing and offline partnerships alongside a tailwind from the change to zero-rating VAT rating on certain protein products. Adjusted EBITDA margin is ahead of H1 2024 by 240bps¹ despite a 50% increase in whey pricing demonstrating the progression made over the last 24 months.

THG Beauty

THG Beauty reported revenue of £500.2m (H1 2025: £479.9m), growth of +4.2% YoY. +5.9% CCY.

The primary driver of revenue growth was THG Beauty Retail, including particularly strong UK Retail performance of +6.7%. This was supported by market share gains, premium brand launches and continued momentum in key growth categories like skincare +17.4% YTD for Lookfantastic.

Customer health metrics remained robust. Active customers were maintained at 7.5 million YoY, loyalty membership increased by 9% to 3.5 million and revenue from returning customers increased to c.90% of sales (H1 2025: c.89%) demonstrating continued customer engagement and repeat purchasing behaviour. Average order values marginally increased with improved LTM D2C orders up to 16.1m (H1 2025: LTM 15.4m) reflecting a deliberate focus on customer quality and profitability.

Adjusted gross profit increased to £194.1m from £190.4m in H1 2025, representing growth +1.9%. Adjusted gross margin reduced by 90bps to 38.8% (H1 2025: 39.7%). The movement principally reflects the phasing of some orders from H1 into H2 for manufacturing. Margin performance remained within our medium-term guided range of 38% - 40%.

Adjusted EBITDA increased to £25.0m (H1 2025: £20.2m), and margin increased to 5.0% (H1 2025: 4.2%), an improvement of 80bps. Focused optimisation of the cost base (primarily payroll) has driven much of the margin improvement, as the business continues to focus on streamlining processes and leaning into AI enhancements.

Own-brand revenue and gross profit were broadly stable versus prior year, while cost-saving initiatives supported an improvement in bottom-line contribution.

Central costs

Central costs for the period were £8.3m (H1 2025: £8.2m), consistent with the prior period and representing approximately 1.0% of Group sales. These costs relate primarily to PLC Board remuneration, insurance, professional services fees, Group finance, corporate development and governance costs that are not recharged to the operating businesses as they principally relate to the operations of the PLC holding company.

Geographical review of revenue

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

	H1 2026 £m	H1 2025 £m
			Movement
UK	470.5	389.8	+20.7%
US	128.7	141.3	-8.9%
Europe	165.7	167.0	-0.8%
Rest of the world	63.9	85.4	-25.1%
Revenue	828.7	783.4	+5.8%

 

The UK continues to be the Group's largest market, growing +20.7% in the period to account for 56.8% of Group revenue (H1 2025: 49.8%), with both THG Beauty and THG Nutrition delivering strong UK performances.

The US declined -8.9% to £128.7m (H1 2025: £141.3m). Approximately a third of the decline was driven by currency translation, alongside another third coming from the US manufacturing business where the phasing of sales into H1 have further impacted. Dermstore continues to perform strongly in the US, delivering revenue growth on a CCY basis.  The US remains a key strategic market for the Group; continued investment in the territory reflects a deliberate, long-term build towards scale.

Europe was broadly stable, at £165.7m a decrease of -0.8% (H1 2025: £167.0m).

Revenue in the rest of the world reduced by -25.1% to £63.9m (H1 2025: £85.4m), principally reflecting the ongoing, intentional pivot in Asia towards licensing with pre-eminent local manufacturing and distribution partners for THG Nutrition. This transition is expected to position the business for structurally higher-margin delivery as the model scales. THG Nutrition CCY revenue growth excluding Asia was +12.1% in H1 2026.

Group financial review

Statutory results

	Six months ended 30 June 2026 £m	Six months ended 30 June 2025 £m
Continuing operations
Revenue	828.7	783.4
Cost of sales	(489.4)	(462.2)
Gross profit	339.3	321.2
Distribution costs	(104.3)	(104.0)
Administrative costs	(245.6)	(247.3)
Operating loss	(10.6)	(30.0)
Finance income	1.1	2.9
Finance costs	(26.8)	(39.5)
Loss before tax	(36.3)	(66.7)
Income tax (charge)/credit	(7.4)	0.6
Loss for the financial period from continuing operations	(43.7)	(66.1)
Discontinued operations
Profit from discontinued operations, net of tax	-	142.4
(Loss)/profit for the financial period	(43.7)	76.3

 

 

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 are consistent with how business performance is monitored and reported to the Board. The below tables reconcile the adjusted (management) view to the statutory result.

					Amortisation and depreciation £m
	Management adjusted view £m		Adjusted items £m					Share based payments £m
										Statutory £m
H1 2026
Revenue	828.7		-		-			-		828.7
Cost of sales	(487.9)		(1.0)		(0.5)			-		(489.4)
Gross profit	340.7		(1.0)		(0.5)			-		339.3
Distribution costs	(99.6)		(0.5)		(4.2)			-		(104.3)
Administrative costs	(198.4)		(4.1)		(35.4)			(7.7)		(245.6)
Operating profit/(loss)	42.8		(5.6)		(40.1)			(7.7)		(10.6)
						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)

Revenue

Group statutory continuing revenue increased by +5.8% to £828.7m (H1 2025: £783.4m), or +7.2% on a continuing CCY basis (+8.1% excluding THG Nutrition Asia). The growth drivers are set out within the business reviews earlier in this report.  

Gross profit

Adjusted gross profit was £340.7m (H1 2025: £322.2m), broadly stable as a margin at 41.1% (H1 2025: 41.1%).

Gross profit on a statutory basis totalled £339.3m (H1 2025: £321.2m) and a margin of 40.9% (H1 2025: 41.0%). The difference to the above, reflecting the impact of adjusted items.

Distribution costs

Adjusted distribution costs were £99.6m (H1 2025: £99.2m), equivalent to 12.0% of revenue (H1 2025: 12.7%), an improvement of 70bps. This reflects a favourable territory mix and improving order volumetrics providing scale benefits.

Distribution costs on a statutory basis totalled £104.3m (H1 2025: £104.0m), being 12.6% (H1 2025: 13.3%) of revenue. The reduction YoY is driven by the reasons set out above.

Administration costs

Adjusted administrative costs were £198.4m (H1 2025: £199.1m), equivalent to 23.9% of revenue (H1 2025: 25.4%), an improvement of 150bps. This reflects the continued benefit of the Group's cost-saving programme, including process efficiencies, partially offset by continued investment in marketing and technology.

Administrative costs on a statutory basis totalled £245.6m (H1 2025: £247.3m), decreasing period on period as a percentage of revenue for the reasons set out above. 

Adjusted EBITDA and Adjusted EBITDA margin

	H1 2026 £m	H1 2025 £m
Reconciliation from operating loss to Adjusted EBITDA
Operating loss	(10.6)	(30.0)
Adjustments for:
Amortisation	7.6	8.6
Amortisation of acquired intangibles	19.4	21.7
Depreciation	13.1	15.5
Adjusted items - cash	4.3	1.7
Adjusted items - non-cash	1.3	3.7
Share-based payments	7.7	2.9
Adjusted EBITDA	42.8	24.0
Adjusted EBITDA %	5.2%	3.1%

 

The drivers are set out in the THG Beauty and THG Nutrition reviews earlier.

Adjusted items

Adjusted items totalled £5.6m in the period (H1 2025: £5.3m), broadly consistent with the prior year. Adjusting items in the current period primarily comprise one-off costs associated with the Group's ongoing strategic and cost programmes. For full details of each category of adjusted items, see note 3 to the financial statements.

Depreciation and amortisation

Statutory depreciation and amortisation costs were £13.1m and £27.0m respectively (H1 2025: £15.5m and £30.3m). Included within amortisation is £19.4m (H1 2025: £21.7m) of amortisation on acquired intangibles (see below) relating to historical acquisitions.

Charges have decreased year on year relating to some assets being fully written down.

Amortisation on acquired intangibles £19.4m (H1 2025: £21.7m)

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 across 2017 to 2022, 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.

The reduction in the amortisation is due to some of the assets now being fully written down.

Finance costs net of finance income

Finance costs net of finance income reduced significantly to £25.7m (H1 2025: £36.6m), reflecting a non-cash accounting charge of approximately £11m in 2025 connected to the refinancing.

Loss before tax from continuing operations and tax rate

Loss before tax from continuing operations was £36.3m (H1 2025: £66.7m), an improvement of £30.4m, reflecting the substantially improved trading performance and lower finance costs discussed above. The associated income tax charge for the period is £7.4m (H1 2025: tax credit of £0.6m), giving rise to an effective tax rate of 20.3% (H1 2025: 0.9%). The rate was principally impacted by the non-recognition of deferred tax assets on losses in certain jurisdictions.

At 30 June 2026, the Group held a net deferred tax liability of £48.6m (H1 2025: £54.0m), primarily relating to acquisition-related intangible assets. The deferred tax position moved from a credit of £1.9m in H1 2025 to a charge of £6.0m in H1 2026. The movement primarily reflects the UK deferred tax position, including the impact of current-year taxable profits and interest restrictions, together with the non-recognition of deferred tax assets where recoverability is not considered sufficiently probable. 

Profit/(loss) for the financial period

The Group's loss for the financial period from continuing operations reduced to £43.7m (H1 2025: loss of £66.1m), an improvement of £22.4m.

The Group's total statutory result for the period was a loss of £43.7m (H1 2025: profit of £76.3m). The prior year result benefited from a one-off net gain of £142.4m on discontinued operations, recognised in connection with the demerger of THG Ingenuity. Excluding this one-off item, the Group's underlying continuing operations performance improved substantially year on year.

Earnings per share

Loss per share on continuing operations was a loss of £(0.03) per share (H1 2025: loss of £(0.05) per share).

Cash flow statement	H1 2026 £m	H1 2025 £m
Adjusted EBITDA	42.8	24.0
Working capital movements	(69.6)	(59.7)
Tax paid	(4.0)	(1.2)
Adjusted items	(5.9)	(3.6)
Net cash generated from operating activities	(36.7)	(40.5)
Purchase of property, plant and equipment	(2.6)	(2.5)
Purchase of intangible assets	(7.4)	(8.0)
Interest paid net of interest received	(14.2)	(16.3)
Lease repayments	(10.0)	(10.4)
Free cash flow	(70.9)	(77.7)
Disposal of discontinued categories and non-core operations	-	0.7
Net repayments of bank borrowings	(3.1)	(181.7)
Proceeds from issuance of ordinary shares net of fees	(0.2)	21.8
Proceeds from the issue of convertible loans	-	67.5
Payments on distribution	(20.2)	(9.8)
Net decrease in cash and cash equivalents	(94.4)	(179.2)
Cash and cash equivalents at the beginning of the period	183.1	308.6
Cash and cash equivalents at the end of the period	88.7	129.4

 

Free cash outflow for H1 2026 was £70.9m (H1 2025: £77.7m outflow), representing an improvement of £6.8m period-on-period despite a higher working capital outflow. The improvement was primarily driven by significantly stronger Adjusted EBITDA of £42.8m (H1 2025: £24.0m), reflecting the operational progress delivered across the Group during the period.

Working capital outflow totalled £69.6m (H1 2025: £59.7m outflow) up from prior period due to phasing of VAT payments. This reflects the normal seasonal profile of the business, where working capital typically unwinds during the first half of the year before rebuilding in the second half. The Group continues to see working capital rebuild from the peak cyber period unwind experienced during the first quarter, consistent with previous years.

Capital expenditure remained well controlled, and lease and net interest payments both reduced, reflecting the benefits of the Group's refinancing activities and lower average debt levels. Cash payments relating to adjusting items were £5.9m (H1 2025: £3.6m), primarily relating to payroll restructuring, vacant premises and project-related costs.

Net repayment of bank borrowings were significantly lower than the prior year. H1 2025 included the repayment of £181.7m of borrowings following the Group's refinancing and demerger-related activities, whereas H1 2026 included only £3.1m of net debt repayments. Distribution payments during the period were £20.2m (H1 2025: £9.8m) reflecting the final settlement post demerger as disclosed and recognised at 31 December 2025.

As a result, cash and cash equivalents reduced during the period, as set out in the Balance sheet section below. The Group ended the period with a healthy liquidity position with available funds of £238.7m, comprising cash balances as above alongside an undrawn revolving credit facility of £150.0m.

Balance sheet

Cash and cash equivalents and net debt before lease liabilities

	30 June 2026 £m	30 June 2025 £m Restated[16]	31 December 2025 £m
Loans and other borrowings	(428.8)	(457.9)	(430.4)
Lease liabilities	(147.0)	(127.0)	(130.8)
Cash and cash equivalents	88.7	129.4	183.1
Sub-total	(487.1)	(455.5)	(378.1)
Adjustments:
Retranslate debt balance at swap rate where hedged by foreign exchange derivatives	10.4	7.0	14.3
Net debt	(476.8)	(448.4)	(363.8)
Net debt before lease liabilities	(329.7)	(321.4)	(233.0)

 

At 30 June 2026, the Group held £88.7m in cash and cash equivalents (H1 2025: £129.4m, FY 2025 £183.1m).

Net debt increased to £476.8m (H1 2025: £448.4m; FY 2025: £363.8m), reflecting the seasonal unwind of working capital during the period.  The increase from H1 2025 is driven through working capital investment in relation to higher whey input prices.

 

Net debt before lease liabilities totalled £329.7m (H1 2025: net debt before lease liabilities £321.4m, 31 December 2025: £233.0m). Excluding the one-off items for the THG Ingenuity demerger net debt before lease liabilities would total £262.8m (H1 2025: £311.6m), a decrease YoY.

 

Borrowings reduced to £428.8m (H1 2025: £457.9m; FY 2025: £430.4m), including a small debt repayment. Lease liabilities increased modestly to £147.0m (H1 2025: £127.0m; FY 2025: £130.8m), principally due to a new lease and a lease extension entered into during the period to support US operations.

 

Non-current assets

Property, plant and equipment totalled £53.0m (H1 2025: £60.9m, 31 December 2025: £55.8m). Intangible assets totalled £827.2m (H1 2025: £857.4m, 31 December 2025: £836.0m) with the reduction in intangibles driven by the amortisation charge (see earlier) partially offset by the foreign exchange rate impact for US dollar denominated assets.

Right-of-use-assets totalled £131.9m (H1 2025: £114.1m, FY 2025: £116.8m) with the new lease addition offset by depreciation in the period.

 

Going concern

In making their assessment of going concern, the Directors reviewed financial projections until 30 September 2027 and concluded that the Group was a going concern.

 

Downside scenarios were modelled including the impacts of a combination of the principal risks occurring including reducing sales and margins for the two key businesses. A reverse stress test was also separately modelled before considering any mitigating actions with the outcome being that the levels required to exhaust going concern would be considered remote. Mitigating actions available include existing cash resources, level of discretionary spend and ability to utilise the RCF.

 

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 2026 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 2026 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

9 September 2026                                                                                                              9 September 2026