THG (THG) H1 2026 earnings summary

Executive summary

• Group revenue grew 7.2% YoY to £828.7m in H1 2026, with both Nutrition and Beauty segments delivering growth for four consecutive quarters and exceeding guidance.

• Adjusted EBITDA more than doubled YoY to £42.8m (5.2% margin), driven by cost control, operational efficiencies, and strong Myprotein performance.

• Free cash flow improved by £6.8m YoY, marking the strongest H1 since 2021, with cash and available facilities at £239m.

• Corporate structure simplified via Ingenuity demerger, asset sales, and cost savings, reducing debt and interest payments.

• Statutory operating loss reduced to £10.6m (H1 2025: £30.0m), with loss for the period from continuing operations narrowing to £43.7m.

Financial highlights

• Group revenue: £828.7m (+7.2% YoY); Nutrition: £328.5m (+9.2% YoY); Beauty: £500.2m (+5.9% YoY).

• Adjusted EBITDA: £42.8m (5.2% margin), up from £24.0m (3.1%) in H1 2025.

• Gross margin stable at 41.1%; Nutrition gross margin up 120bps to 44.6%, Beauty gross margin down 90bps to 38.8%.

• Free cash outflow improved to £70.9m (H1 2025: £77.7m outflow), with cash and available facilities at £238.7m.

• Net debt before lease liabilities: £329.7m, impacted by working capital and demerger payments.

Outlook and guidance

• Full-year revenue, Adjusted EBITDA, and free cash flow expected in line with consensus; FY 2026 free cash flow guided at £25m–£35m.

• Q3 revenue growth expected at ~2%, with Q4 growth accelerating to 6–7%.

• Myprotein on track to sell ~130m branded units in 2026.

• Targeting group net debt reduction to ~1x leverage by FY 2027, with potential for net cash position if further asset sales or VAT claim succeed.

• Sustained divisional EBITDA margins: >12% for Nutrition, >6% for Beauty.