THG (LON:THG) Issues Earnings Results

Key Points

• THG reported strong first-half results: Revenue increased 7.2% to £828.7 million, while adjusted EBITDA more than doubled to £42.8 million. Management expects £25 million–£35 million in positive full-year free cash flow.
• Growth initiatives remain focused on Nutrition and Beauty: Myprotein volumes rose 57%, while THG Beauty added more than 50 brands and gained traction on TikTok Shop and through its AI-powered Beauty Assistant.
• Near-term challenges pressured the stock: Shares fell 12% amid expected third-quarter growth of roughly 2%, new EU duties and a delayed Nutrition VAT claim. Analysts nevertheless maintained a “Moderate Buy” consensus with an average price target of GBX 57.50.

THG (LON:THG - Get Free Report) issued its quarterly earnings results on Thursday. The company reported GBX (3) earnings per share for the quarter, Digital Look Earnings reports. THG had a return on equity of 12.75% and a net margin of 3.15%.

Here are the key takeaways from THG's conference call:

• Strong H1 performance: Revenue rose 7.2% to £828.7 million, while adjusted EBITDA more than doubled year over year to £42.8 million, reflecting growth and cost efficiencies.
• Management expects £25 million–£35 million of positive full-year free cash flow and believes improving EBITDA and cash generation could reduce leverage to approximately 1x by 2027, with further upside from potential asset disposals.
• Myprotein branded unit volumes increased 57% to 58.5 million in H1, with the company targeting approximately 130 million units for 2026; licensing, activewear, retail expansion and possible whey-cost relief support the path toward a 12% Nutrition EBITDA margin.
• THG Beauty continues to gain share, adding more than 50 brands and becoming the number-one multi-brand beauty retailer on TikTok Shop; AI initiatives are showing early traction, with Beauty Assistant users reportedly 7x more likely to purchase.
• Near-term trading includes some softness from new EU duties and the phasing of own-brand sales; Q3 constant-currency growth is expected to be approximately 2%, while the Nutrition VAT claim has been delayed by HMRC until at least the end of October 2026.

THG Trading Down 12.0%

Shares of THG stock opened at GBX 27.90 on Thursday. The stock has a market cap of £442.73 million, a P/E ratio of 6.97, a price-to-earnings-growth ratio of -0.08 and a beta of 2.47. THG has a 1 year low of GBX 27.20 and a 1 year high of GBX 52.55. The company has a current ratio of 0.92, a quick ratio of 0.89 and a debt-to-equity ratio of 131.97. The stock has a 50 day simple moving average of GBX 32.11 and a 200 day simple moving average of GBX 32.20.

Analysts Set New Price Targets

Separately, Jefferies Financial Group restated a "buy" rating and issued a GBX 60 price objective on shares of THG in a report on Monday, August 10th. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, THG has an average rating of "Moderate Buy" and an average target price of GBX 57.50.

About THG

THG (www.thg.com) is a global innovator revolutionising how brands connect to a worldwide consumer base. We are transforming how consumer brands go to market in the digital age. We have built a portfolio of leading digital beauty, health, wellness, and sports nutrition brands that are capitalising on the global growth opportunities, supported by the accelerating consumer shift to the e-commerce channel. THG is home to three key divisions: Beauty, Nutrition, and Ingenuity. All brands, whether in-house or third parties are powered by our complete commerce division Ingenuity, which is a flexible and scalable offering formed of a combination of complex e-commerce technologies, physical assets, infrastructure, and brand building capabilities. THG Beauty is home to leading online pure-play retailers for prestige beauty products and brings together global online multi-brand retail subscription boxes, owned prestige brands along with production and innovation.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.