THG (LON:THG) Posts Earnings Results

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

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 1.0%

LON THG opened at GBX 27.40 on Friday. THG has a 12-month low of GBX 26.16 and a 12-month high of GBX 52.55. The company has a fifty day simple moving average of GBX 31.95 and a two-hundred day simple moving average of GBX 32.11. 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 market cap of £434.75 million, a P/E ratio of 6.85, a P/E/G ratio of -0.08 and a beta of 2.47.

Key Headlines Impacting THG

Here are the key news stories impacting THG this week:

• Positive Sentiment: THG reported first-half revenue growth of 7.2%, while adjusted EBITDA more than doubled. The improvement indicates operating leverage and stronger trading across the group. THG H1 Revenue Rises 7.2% as Adjusted EBITDA More Than Doubles
• Positive Sentiment: Myprotein supported growth following its rebrand, benefiting from continued consumer demand for sports nutrition and protein products. THG interim revenue growth supported by Myprotein rebrand
• Positive Sentiment: The Beauty division also performed well, with Lookfantastic and TikTok Shop helping drive revenue momentum in the first half. THG beauty revenue jumps as Lookfantastic and TikTok Shop drive momentum
• Neutral Sentiment: THG Ingenuity appointed a new chief executive, a management change that could support the division’s strategic development but adds an element of execution uncertainty. THG Ingenuity names new CEO
• Negative Sentiment: Management warned that new EU tariffs are expected to weigh on third-quarter results. The warning tempers the strong first-half figures and raises concerns about margins, particularly for Myprotein’s cross-border sales. UK’s THG first-half profit more than doubles, warns of Q3 tariff hit
• Negative Sentiment: The shares fell even though first-half profit more than doubled, suggesting investors were more concerned about the tariff-related outlook and potentially demanding valuation expectations than the reported earnings improvement. THG shares fall despite profits more than doubling

Analysts Set New Price Targets

Separately, Jefferies Financial Group restated a “buy” rating and issued a GBX 60 target price on shares of THG in a research note on Monday, August 10th. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company presently 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.