THG: Shares spike as e-commerce giant gains momentum after slow start to the year
Ecommerce platform THG returned to growth in the second quarter of the year, driven by a sales boost for its supplement brand Myprotein, causing an eight per cent share price boost.
THG told markets this morning that revenue rose 0.9 per cent quarter on quarter, although overall revenue in the first half of the year was 2.9 per cent lower than in 2024, at £783.4m.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) dropped by 35 per cent to £24m.
Gross profit fell 10.8 per cent to £322m, driven by a 14.8 per cent drop in beauty sales.
Revenue at THG’s nutrition arm, meanwhile, rose 3.1 per cent to £303.6m, with second-quarter growth the strongest since 2022.
At the beginning of January, THG demerged Ingenuity, its tech and distribution business into a new private entity. City PM is part of the Ingenuity private business.
“I’m really pleased at how THG has gained momentum throughout the first half and into [the third quarter],” CEO Matt Moulding said.
“A slower start to the year in beauty, alongside record whey prices in Nutrition, initially held back performance, but we saw clear improvement in Q2, in particular supported by Myprotein offline retail and licensing sales,” Moulding added.
Guidance for the full year remained unchanged, with third-quarter trading the “strongest trading performance of 2025 so far.”
A ‘good start’ for THG
Peel Hunt analysts said THG had a “good start” to the second half of the year and that its unchanged guidance was “welcome”.
“The [first half] results were well flagged and… do not contain much new information,” analysts said.
“There is a lot to prove here, and it really is all down to cash generation… While [2026] could bring upside if Myprotein’s offline expansion continues to gain traction and whey prices decline, the timing of these catalysts remains uncertain,” analysts added.
Peel Hunt rated THG a ‘hold’ with a target price of 26p.
The company’s share price has risen by more than seven per cent in the last week, but has fallen by around a third in the past year.