THG Plc

THG said H1 group revenue increased 7.2% to £829 million. Adjusted EBITDA reached £42.8 million, more than double the prior year when adjusting for the Claremont Ingredients disposal, and LTM EBITDA to June was £95.4 million. Management said free cash flow improved significantly in H1 and reaffirmed a full-year target of £25 million to £35 million of positive free cash flow. For Q3, management expects constant-currency sales growth of approximately 2%, with Q4 revenue growth expected to accelerate to approximately 6% to 7%. Myprotein is on track to sell approximately 130 million branded units for full-year 2026, and the company said the HMRC VAT claim is now expected to receive an update by the end of October 26.

Matthew Moulding framed the quarter as evidence that THG’s multi-year simplification is working, saying the group has shifted into an execution phase after selling non-core businesses, reducing headcount by approximately 25% over 18 months, and demerging Ingenuity. He emphasized that THG is now a capital-light group with two global businesses and said the company is seeing stronger profitability and cash generation without sacrificing growth. His tone was confident and assertive, particularly around Myprotein’s scale, Beauty’s digital leadership, and the potential for further asset monetization.

The call highlighted a stronger cash profile, with management saying H1 free cash flow improved materially and that capital expenditure and lease payments have fallen substantially after the Ingenuity demerger. They also said debt facilities have been refinanced through the end of 2029, leverage has come down, and cash interest costs have been lowered. Management tied the full-year cash outlook to the H1 adjusted EBITDA of £42.8 million, LTM EBITDA of £95.4 million, normal H2 working-capital inflow, and further inventory optimization initiatives.

Analysts focused on Nutrition licensing expansion, GLP-1-driven demand, AI in Beauty, and possible asset disposals. Moulding said licensing partnerships often start in one market and then expand to other territories once they prove successful, and he stressed that GLP-1 is more about educating mainstream consumers than launching a single dedicated product. On Beauty AI, management said the new beauty adviser is already seeing over 1% customer engagement and those users are 7x more likely to purchase; they also said up to half of customers research via LLMs before visiting the site, with traffic referred by LLMs up 4x. On disposals, Moulding said offers received so far have been rejected because management does not view them as fair value.