What's Happening?
THG, a sports nutrition and premium beauty business, has reported a return to revenue growth in the second quarter of 2025. The company, which owns brands like Myprotein and LookFantastic, highlighted strategic changes made in 2024 that are now yielding positive results. The demerger of THG Ingenuity and the disposal of Claremont Ingredients have positioned the company on an accelerated path towards a net cash position. Despite a 2.6% year-on-year decline in group revenue to £783.4m, THG forecasts growth in the second half of the year, driven by new brand launches and expanded partnerships.
Why It's Important?
The return to growth for THG is significant as it reflects the effectiveness of its strategic initiatives and positions the company for future expansion. The focus on brand investment and partnerships, particularly in the U.S. market, could enhance THG's competitive edge in the global beauty and nutrition sectors. The forecasted revenue growth in H2 indicates potential positive impacts on shareholder confidence and market positioning.
What's Next?
THG anticipates continued revenue growth in the second half of 2025, with expectations of 1-3% growth in Beauty and 10-12% in Nutrition. The company plans to leverage ongoing brand investments and a favorable trading environment to support this growth. The expansion of Myprotein's offline retail presence in the U.S., including a rollout into Walmart, is expected to drive further sales.
