THG Achieves Strongest Organic Growth in Four Years with Nutrition and Beauty Divisions

What's Happening?

THG has reported its highest quarterly organic growth since Q4 2021, with Group revenue rising by 6.3% in Q3 2025. This growth was driven by double-digit gains in its Nutrition division, particularly through Myprotein's expanding direct-to-consumer market share. THG Beauty also showed solid recovery, with significant growth in UK retail and improved performance in the US, especially in luxury skincare and devices. The company's strategic initiatives and operational changes have contributed to this turnaround, positioning THG ahead of its previously stated H2 2025 guidance.

Why It's Important?

THG's strong performance is a positive indicator for the ecommerce sector, showcasing the effectiveness of strategic changes and investments in brand proposition. The growth in the Nutrition and Beauty divisions highlights the increasing consumer demand for health and wellness products, as well as luxury beauty items. This development is crucial for stakeholders in the ecommerce and retail industries, as it may influence market trends and investment decisions. THG's success could also impact competitors, prompting them to reevaluate their strategies and offerings.

What's Next?

THG is set to announce 'exciting new partnerships' soon, which could further enhance its market position. The company is well-positioned for the key trading period ahead, with Q4 traditionally being its most profitable and cash-generative period. THG's focus on subscription-based brands and expanding global retail footprint suggests continued growth potential. The reaffirmation of full-year expectations indicates confidence in achieving revenue and EBITDA targets, despite previous challenges in the first half of the year.

Beyond the Headlines

THG's strategic focus on subscription-based brands and direct-to-consumer models reflects broader trends in ecommerce towards personalization and convenience. The company's ability to adapt and innovate in response to market demands highlights the importance of agility in the retail sector. Additionally, the demerger of THG Ingenuity and sale of Claremont Ingredients demonstrate THG's efforts to streamline operations and reduce debt, which could serve as a model for other companies facing similar challenges.