THG posts 7.2 percent revenue increase in first half of 2026

UK e-commerce group THG PLC (THG) has announced its interim financial results for the half-year ended June 30, 2026, recording a 7.2 percent increase in group revenue on a continuing constant currency (CCY) basis to 828.7 million pounds (1,123 million dollars). Revenue reached 828.7 million pounds on a statutory basis, up 5.8 percent compared to 783.4 million pounds in the first half of 2025.

Adjusted EBITDA more than doubled on a like-for-like (LFL) basis, surging 109 percent to 42.8 million pounds compared to 20.5 million pounds in the prior period excluding discontinued operations. On a statutory basis, operating loss narrowed significantly by 65 percent to 10.6 million pounds, down from 30 million pounds in the first half of 2025.

"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," said Matthew Moulding, chief executive officer of THG.

Activewear and licensing expansion boost nutrition sales

THG Nutrition reported revenue of 328.5 million pounds, up 9.2 percent on a continuing CCY basis and 8.2 percent on a YoY basis. Growth was led by flagship sports nutrition brand Myprotein, which sold 58.5 million branded units globally during the six-month period, up 57 percent from 37.2 million units in the first half of 2025.

Adjusted gross margin for the division expanded 120 basis points to 44.6 percent. Orders containing activewear generated a 30 percent higher average order value (AOV) compared to non-activewear purchases. Annualised run-rate sales for activewear approached the division's 100 million pound target.

Licensing-out partnerships also expanded, delivering a retail sales value of 75 million pounds, up 83 percent YoY.

Beauty segment gains UK market share

THG Beauty generated revenues of 500.2 million pounds, representing a 5.9 percent increase on a CCY basis and 4.2 percent on a YoY basis. The segment's adjusted EBITDA grew 23.8 percent to 25 million pounds, with EBITDA margin improving by 80 basis points to 5 percent.

Retail platform Lookfantastic outperformed the broader UK prestige beauty market, while Dermstore gained market share in the US. Active customers across the beauty division were maintained at 7.5 million, while loyalty program membership grew 9 percent YoY to 3.5 million members. Returning customers accounted for approximately 90 percent of total sales.

Adjusted gross margin for the beauty segment contracted 90 basis points to 38.8 percent, primarily due to the timing of manufacturing orders shifting into the second half of the year.

Full-year outlook

Moody's upgraded the group's Term Loan B rating to B3 with a stable outlook, citing trading progress.

Looking ahead, management reconfirmed full-year guidance in line with market consensus, projecting full-year positive free cash flow between 25 million pounds and 35 million pounds.

Third-quarter revenue growth is expected to slow temporarily to around 2 percent due to European heatwaves and the removal of the European Union 150 euro de minimis customs duty exemption. However, revenue growth is forecast to accelerate to between 6 percent and 7 percent in the fourth quarter.