THG has posted better-than-expected sales and earnings for the first half as strong growth at Myprotein helped drive a sharp improvement in profitability.

The Lookfantastic and Myprotein owner saw group revenue rise 7.2 per cent on a continuing constant-currency basis to £828.7m in the six months to 30 June, ahead of its 6.5 per cent guidance. Reported sales were up 5.8 per cent year on year.

Adjusted EBITDA hit £42.8m, ahead of THG’s guidance of at least £40m and up 109 per cent on a like-for-like basis after stripping out the contribution from Claremont Ingredients, which it sold last August.

Group adjusted EBITDA margin climbed to 5.2 per cent from 3.1 per cent a year earlier, while its operating loss narrowed 65 per cent from £30m to £10.6m.

THG Nutrition, which houses Myprotein, was the standout performer as revenue jumped 9.2 per cent on a continuing constant-currency basis to £328.5m.

The division’s adjusted EBITDA more than doubled from £12m to £26m, as price increases, channel diversification and growth in higher-margin categories helped offset elevated whey costs.

Myprotein sold 58.5m branded products during the period, up 57 per cent year on year, and THG expects the sports nutrition brand to sell more than 130m products across the full year.

THG Beauty, which includes Lookfantastic, Cult Beauty and Dermstore, recorded a 5.9 per cent increase in revenue to £500.2m, marking its fourth consecutive quarter of growth alongside the Nutrition division.

Beauty adjusted EBITDA increased 23.8 per cent to £25m, with Lookfantastic gaining share in the UK prestige beauty market and Dermstore making further gains in the US. THG added more than 50 new beauty brands during the half, while K-beauty attracted over 64,000 new customers.

Chief executive Matthew Moulding said the group was “reaping the rewards” of Myprotein’s global rebrand and its expansion into licensing, activewear and higher-margin categories.

THG also delivered its strongest first-half free cash flow performance since 2021, with its cash outflow improving by £6.8m to £70.9m despite higher working capital requirements.

However, it warned revenue growth is expected to slow to around two per cent in its third quarter following the introduction of new EU duties affecting THG Beauty, alongside weaker demand during the European heatwave and the phasing of some own-brand beauty sales into later periods.

It expects growth to accelerate again to between six per cent and seven per cent in the fourth quarter, with full-year revenue, adjusted EBITDA and cash flow forecasts remaining in line with market expectations.

THG is targeting positive free cash flow of between £25m and £35m for the year.

It also said there were early signs that pressure from record-high whey prices was beginning to ease, providing a potential boost to Myprotein margins heading into 2027.

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