THG (LON:THG) Posts Quarterly Earnings Results

THG (LON:THG) released its quarterly earnings results on Thursday. The company reported GBX (3) earnings per share for the quarter, Digital Look Earnings reports. THG had a net margin of 3.15% and a return on equity of 12.75%.

Here are the key takeaways from THG’s conference call:

• Strong H1 performance: Revenue rose 7.2% to £828.7 million, while adjusted EBITDA more than doubled year over year to £42.8 million, reflecting growth and cost efficiencies.
• Management expects £25 million–£35 million of positive full-year free cash flow and believes improving EBITDA and cash generation could reduce leverage to approximately 1x by 2027, with further upside from potential asset disposals.
• Myprotein branded unit volumes increased 57% to 58.5 million in H1, with the company targeting approximately 130 million units for 2026; licensing, activewear, retail expansion and possible whey-cost relief support the path toward a 12% Nutrition EBITDA margin.
• THG Beauty continues to gain share, adding more than 50 brands and becoming the number-one multi-brand beauty retailer on TikTok Shop; AI initiatives are showing early traction, with Beauty Assistant users reportedly 7x more likely to purchase.
• Near-term trading includes some softness from new EU duties and the phasing of own-brand sales; Q3 constant-currency growth is expected to be approximately 2%, while the Nutrition VAT claim has been delayed by HMRC until at least the end of October 2026.

THG Trading Down 11.6%

Shares of THG stock traded down GBX 3.68 during trading hours on Thursday, hitting GBX 28.02. The company’s stock had a trading volume of 30,867,117 shares, compared to its average volume of 10,599,442. The company has a market capitalization of £444.64 million, a PE ratio of 7.00, a price-to-earnings-growth ratio of -0.08 and a beta of 2.47. The company has a debt-to-equity ratio of 131.97, a current ratio of 0.92 and a quick ratio of 0.89. The stock has a 50 day moving average of GBX 32.11 and a 200 day moving average of GBX 32.20. THG has a 12 month low of GBX 26.70 and a 12 month high of GBX 52.55.

Wall Street Analyst Weigh In

Separately, Jefferies Financial Group reissued a “buy” rating and set a GBX 60 price target on shares of THG in a research note on Monday, August 10th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of GBX 57.50.

About THG

THG (www.thg.com) is a global innovator revolutionising how brands connect to a worldwide consumer base. We are transforming how consumer brands go to market in the digital age.

We have built a portfolio of leading digital beauty, health, wellness, and sports nutrition brands that are capitalising on the global growth opportunities, supported by the accelerating consumer shift to the e-commerce channel.

THG is home to three key divisions: Beauty, Nutrition, and Ingenuity. All brands, whether in-house or third parties are powered by our complete commerce division Ingenuity, which is a flexible and scalable offering formed of a combination of complex e-commerce technologies, physical assets, infrastructure, and brand building capabilities.

THG Beauty is home to leading online pure-play retailers for prestige beauty products and brings together global online multi-brand retail subscription boxes, owned prestige brands along with production and innovation.