THG has returned to profit after a strong second half performance helped drive revenue growth across both its beauty and nutrition divisions.
The owner of Lookfantastic, Dermstore, Cult Beauty and Myprotein reported adjusted revenue of £1.72bn for the year to 31 December 2025, up 2.3 per cent on a continuing constant currency basis.
Adjusted EBITDA came in at £76.6m, ahead of both company guidance and consensus expectations of around £74m, while the group posted a statutory profit after tax of £54.1m compared with a loss of £326.1m the previous year.
THG said the turnaround was supported by disposals, a refinancing of the business and stronger trading momentum in the second half, with the group exiting the year with revenue growth of 7.2 per cent in the fourth quarter.
Beauty was a standout performer, with THG reporting a marked acceleration in the division during the second half. The business said Lookfantastic led growth in the UK and Ireland, where it delivered its strongest fourth quarter performance since 2021 and became the number one multi-brand beauty retailer on TikTok Shop.
THG Beauty recorded continuing constant currency growth of 0.2 per cent for the full year, as a weaker first half gave way to a stronger second half performance. The group said it launched more than 80 new brands during the year, while Dermstore also improved momentum in the US.
Meanwhile, THG Nutrition posted 6.4 per cent continuing constant currency growth, driven by Myprotein’s expansion into offline retail, licensing and adjacent categories such as creatine and activewear.
Myprotein products are now stocked in more than 40,000 retailers globally, while THG said over 43 million licensed Myprotein products were sold during the year. The business has also signed licensing partnerships with Mars and Greencore as it looks to push the brand further beyond its direct-to-consumer roots.
THG chief executive Matthew Moulding said: “Today’s results reflect the strength of our business models and the exceptional execution by the team.
“I am pleased with how we have continued to transform THG during 2025, returning to consistent growth against a challenging macro-economic backdrop through disciplined investment in our brands and an unwavering focus on our customers worldwide.”
He added that Lookfantastic had “led the charge in the UK”, while Myprotein remained “one of our greatest assets” despite ongoing pressure from elevated whey prices.
The group also pointed to a strengthened balance sheet after reducing gross debt by £162m during the year and extending debt facilities to 2029. Net debt before lease liabilities fell to £233m from £304.3m a year earlier.
THG said it expects free cash flow generation of between £25m and £50m in 2026, while group revenue and adjusted EBITDA guidance remains unchanged and in line with consensus at £1.78bn and £101.4m respectively.
It also said retrospective VAT claims had been submitted to HMRC following a ruling that protein powders qualify for zero-rated VAT.
If successful, the claim could result in a cash payment of around £78m, comprising about £60m relating to protein powders and a further £18m linked to certain supplements.
Looking ahead, THG said Beauty entered 2026 with strong underlying growth and improved US performance, while Nutrition is expected to deliver mid-to-high single digit revenue growth as Myprotein continues to scale its offline and licensing footprint.
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