THG CEO Matt Moulding said the company was ‘on the front foot’ after publishing its results for 2025.
The company described 2025 as a ‘tale of two halves’, starting with a ‘challenging’ Q1 but giving way to ‘accelerating momentum’, which culminated in the strongest quarter of the year in Q4.
The group delivered adjusted revenue of £1.72bn.
2025 started with the demerger of THG Ingenuity and included the disposal of Claremont Ingredients for £103m, which helped reduce net debt from £304.3m to £233m.
THG also announced its free-cash flow generation was anticipated to be in the range of £25m-£50m for the year ahead.
The company also said it expects to benefit from a VAT ruling on protein powders, with the potential of a successful £78m claim against HMRC.
Share price rises
THG’s share price rose from 31.60p to 34.18p in early trading on the back of the news. The company has a market cap of £558m.
One analyst told BusinessCloud: “This share price has been driven by supply and demand not by the fundamentals of valuing a company.
“Today’s results are above previous guidance and paint a positive picture around cashflow, year-end net debt levels and provide clarity on the VAT situation. The stock is undervalued.”
CEO and founder Matt Moulding told the City: “We enter 2026 on the front foot with strong trading momentum and a focus on material free cash flow delivery.”
Writing on LinkedIn later, Moulding added: “Momentum built as the year went on and that changes everything.
“2026 has started well across both THG and THG Ingenuity, despite the usual chaotic start to the year globally.
“Maybe we do need shorter Christmas breaks… less time for world leaders to get creative.”
Moulding identified five highlights from 2025:
• Record H2 revenue: £929.7m (+6.8 per cent)
• FY revenue: £1.72bn (+2.3 per cent)
• EBITDA: £76.6m (ahead of guidance and consensus)
• Profit after tax: £54.1m
• Refinancing in place to Dec 2029
He added: “Q1 tested us. We were deep in reshaping parts of the Beauty model, which impacted sales, while also refinancing the business… just as tariffs started landing globally. We couldn’t have timed it worse if we tried.”
THG Beauty recorded full year revenue growth of +0.2 per cent, reflecting a recovery in H2 (+5.4 per cent H2 vs -5.9 per cent H1).
The decline in reported full-year statutory revenue from £1,171.1m to £1,107.9m was put down to its strategic decision to exit non-core, loss-making operations.
TikTok Shop boost
Lookfantastic UK delivered growth that outpaced the beauty eCommerce market and was named the #1 multi-brand beauty retailer on TikTok Shop, a key element of a social commerce strategy designed to capture a new generation of consumers.
This approach successfully converted social engagement into sales, with sales through this channel surging by 112 per cent YoY during the peak November cyber sales period.
THG Nutrition’s revenue growth increased from £580.3m to £609.1m, equating to a 5 per cent rise (or 6.4 per cent CCY when the impact of exchange rate changes is excluded).
Revenue growth performance was driven by a successful pivot to an omnichannel strategy and growing awareness for Myprotein following the global rebrand.
THG Nutrition made significant progress in expanding its B2B, retail and licensing channels during the year.
Myprotein products are now available in over 40,000 retail doors globally and new licensing partnerships were signed with global confectionary brand Mars, and Greencore, a leading producer of convenience foods.
Myprotein’s activewear category continues to deliver strong growth, representing c.12% of D2C sales. Focused investment in core products, stronger brand perception and an expanding influencer and ambassador programme has broadened the customer base beyond its core sports nutrition audience.
The category is further underpinned by a new collaboration with Champion, positioning both brands to reach in the fast-growing athleisure and training markets. The group sees a clear multi-year pathway to building activewear into a £100m revenue business.
The group reported an operating profit of £8.1m, an improvement from the prior year’s loss (FY 2024: £147.9m loss). This improvement is directly attributable to a significant reduction in adjusting items, combined with the profit generated on disposal of Claremont Ingredients.
The group maintains a strong liquidity position with £333m in cash and available facilities, before any repayment of the VAT claims.
The balance sheet was significantly strengthened during the year, with total borrowings reduced by £174m and debt facilities successfully extended to 2029, providing long-term financial stability.