THG (LON:THG) Releases Earnings Results

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

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 Price Performance

Shares of LON THG opened at GBX 26.73 on Friday. THG has a fifty-two week low of GBX 26.46 and a fifty-two week high of GBX 52.55. The company has a market cap of £424.15 million, a PE ratio of 6.68, a P/E/G ratio of -0.08 and a beta of 2.47. The company has a debt-to-equity ratio of 131.97, a quick ratio of 0.89 and a current ratio of 0.92. The business has a 50-day simple moving average of GBX 32.02 and a two-hundred day simple moving average of GBX 32.14.

Analysts Set New Price Targets

Separately, Jefferies Financial Group reaffirmed a “buy” rating and issued a GBX 60 price target on shares of THG in a report 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, the company has a consensus rating of “Moderate Buy” and an average target price of GBX 57.50.

THG Company Profile

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.