Following yesterday’s release of THG’s figures for the six months ending 30 June 2025, Charlotte Chilcott, retail analyst at GlobalData, offers her view: “THG’s H1 FY2025 results paint a mixed picture, reflecting ongoing challenges, with some signs of resilience that hint at a better performance in the second half. Indeed, in Q2, group revenue rose by 0.9% versus Q2 FY2024, resulting in a 10% jump in share price.
“THG expects to achieve growth of between 1% and 3% in THG Beauty in the second half of the year, while its Nutrition operations could be more buoyant between 10% and 12%. Given the importance of H2, as it incorporates the all-important golden quarter, this may be enough to achieve growth for the financial year. Yet, revenue fell 2.6% in the first half, after a poor start for its Beauty division.
“Adjusted EBITDA for the group also decreased, dropping 35.3% to £24.0m in H1. The division’s weak performance can largely be attributed to the discontinuation of activities and the disposal of its luxury portfolio. While these moves will streamline operations, they have impacted revenue and profits at a time when the beauty market is ripe for growth.
“THG Beauty’s revenue fell by 5.9% to £479.9m. This decline was driven by the closure of Australian beauty and subscription box services in Europe, coupled with its exit from underperforming markets in Asia, but currency fluctuations also had a significant impact. Despite these challenges, THG Beauty has launched over 70 new brands this year, including high-profile entries such as Gucci Beauty. Investment in personalisation tools, including diagnostic technology and tailored product recommendations, should ensure the successful introduction of these new brands in the second half of the year. Furthermore, this strategic pivot towards innovation and a diversified product offering should help THG Beauty regain momentum in the competitive beauty landscape.
“THG Nutrition performed comparatively better, as it reported a revenue increase of 3.1% to £303.6m for the six months ending 30 June 2025 – though this is against a weak comparative. This growth was driven by higher average selling prices that have returned to pre-rebrand levels.
“New partnerships that expanded Myprotein’s reach also bolstered THG Nutrition’s performance, including a deal with Walmart that increased its US presence to approximately 8,400 stores, up from 1,500 in 2024. However, the nutrition division continues to face challenges from US tariffs and high commodity prices, particularly for whey protein, which has exerted pressure on gross profit margins.
“Adjusted EBITDA for the nutrition segment fell 38.8% to £12.0m. While cost efficiencies in distribution and payroll provided some offset, the retailer will face ongoing pressure on margins in H2 FY2025.”
