THG Plc

THG reported H1 group revenue of £829 million, up 7.2% year over year, and adjusted EBITDA of £42.8 million; management said this was more than double the prior year on an adjusted basis after Claremont. LTM adjusted EBITDA to June was £95.4 million. For outlook, the company expects Q3 constant-currency sales growth of approximately 2%, Q4 revenue growth of approximately 6% to 7%, and full-year positive free cash flow of £25 million to £35 million. Myprotein sold approximately 58.5 million branded products in H1 and remains on track for approximately 130 million units in FY26.

Matthew J. Moulding framed the period as evidence that THG’s restructuring is now paying off, highlighting the simplification of the group, the Ingenuity demerger, a 25% reduction in headcount over 18 months, and a shift to a capital-light model. He emphasized that growth has not come at the expense of discipline, saying the company is now in execution mode with stronger margins, better cash generation and a stronger balance sheet. His tone was confident and upbeat, especially around the long-term potential in Nutrition, Beauty, and asset monetization.

The call emphasized improving profitability and cash generation, with adjusted EBITDA of £42.8 million and LTM EBITDA of £95.4 million. Management said capex and lease payments have reduced materially after the Ingenuity demerger, debt has been refinanced through the end of 2029, leverage has come down and cash interest costs are lower. They reiterated full-year free cash flow of £25 million to £35 million and said H2 should benefit from normal seasonal working capital inflow plus further stock and working-capital optimization. Management also flagged that if any meaningful non-core asset sale occurs, the group could move to net cash positive by end-FY27.

Analysts focused on licensing expansion, GLP-1-driven demand, disposals and how AI is changing beauty discovery. Management said licensing typically starts in one territory and is then expanded after success is proven, and that it sees opportunities to roll existing and new agreements into Europe, the U.S. and other markets. On GLP-1, management said the bigger effect is mainstream protein education rather than a narrow product set, while on disposals it said there has been third-party interest in non-core assets but no deal has met value expectations so far. On AI, the company said its beauty adviser is already seeing over 1% customer engagement, with those users 7x more likely to purchase, and that traffic referred by LLMs is up 4x.