**Summary of THG PLC Interim Results for Half-Year Ended 30 June 2025**
THG PLC (THG) reported its interim results for the first half of 2025, highlighting a return to revenue growth in Q2, with a 0.9% increase, and a positive start to H2 across both its businesses, THG Beauty and THG Nutrition. The companys strategic model changes implemented in 2024 are showing results, and management is confident in the full-year and medium-term outlook.
**Key Financial Highlights**
**Group Revenue** £783.4 million, a 2.6% decline in constant currency year-on-year (YoY), primarily due to strategic exits and portfolio rationalization.
**Gross Margin** 41.1%, down from 42.6% in H1 2024, impacted by whey price fluctuations. Margins are expected to return to growth in H2.
**Adjusted EBITDA** £24.0 million, down from £37.1 million in H1 2024, in line with the August 2025 trading update.
**Cash and Available Facilities** £279.4 million, with an additional £103 million from the disposal of Claremont Ingredients.
**Net Debt** £321.4 million, reducing to £220 million proforma after the Claremont Ingredients sale.
**Business Segment Performance**
1. **THG Beauty**
Revenue£479.9 million, down 5.9% in constant currency, impacted by strategic exits and portfolio rationalization.
Adjusted EBITDA£20.2 million, down from £28.6 million, due to revenue decline and lifecycle investments.
New brand launches, including Gucci Beauty, and a growing loyalty base are driving growth.
2. **THG Nutrition**
Revenue£303.6 million, up 3.1% in constant currency, driven by offline channel expansion and brand licensing.
Adjusted EBITDA£12.0 million, down from £19.6 million, primarily due to gross margin decline from record whey prices.
Myproteins offline and licensing strategies are gaining traction, with significant retail partnerships and product innovations.
**Strategic Initiatives and Outlook**
**Demerger of THG Ingenuity** Completed at the start of H1, simplifying the Groups structure.
**Disposal of Claremont Ingredients** Sold to Nactarome Group for £103 million, accelerating the path to a net cash position.
**Refinancing** Secured long-term committed facilities, reducing gross debt by £374 million.
**Guidance** THG Beauty expects H2 revenue growth of 1.0% to 3.0%, and THG Nutrition expects 10.0% to 12.0% growth.
**Management Commentary**
CEO Matthew Moulding expressed satisfaction with the momentum gained in H1 and into Q3, attributing it to strategic initiatives and the successful demerger and refinancing. He highlighted the resilience of THG Beauty, particularly in the UK, and the strong performance of THG Nutrition, driven by Myproteins offline and licensing strategies. Moulding emphasized the Groups focus on profitability and cash generation in H2, supported by a simplified structure and reduced debt.
**Conclusion**
THG PLCs H1 2025 results reflect a strategic shift towards profitability and cash generation, with a focus on core businesses and a simplified structure. Despite challenges in gross margins and EBITDA, the company is confident in its growth prospects, supported by strong trading momentum and strategic initiatives. The successful demerger, refinancing, and asset disposals have significantly improved the Groups financial position, setting the stage for a stronger H2 and medium-term performance.