THG PLC (LSE:THG) has reported a return to profit and accelerating sales growth, as the online retailer and sports nutrition maker said it was making progress in simplifying the business after years of restructuring.
The group swung to a profit after tax of £54.1 million in 2025, against a loss of £326.1 million a year earlier, helped by the sale of its Claremont Ingredients unit.
Underlying profits (EBITDA) of £76.6 million came in ahead of the company’s own guidance of around £74 million, but fell from £83.3 million the previous year.
Total revenue came in at £1.72 billion, down 2% year on year as the company exited loss-making operations, but up 2.3% on a constant currency basis.
THG Beauty, which includes the Lookfantastic website, and THG Nutrition, the home of sports brand Myprotein, both grew sales in the second half, with the group exiting the year at 7.2% revenue growth in the final quarter.
THG also flagged a potential £78 million tax windfall from an ongoing VAT dispute with HMRC over the tax treatment of protein powders, with a ruling expected by the end of spring.
Chief executive Matthew Moulding hailed refinancing of the group’s balance sheet in the year as “especially pleasing, resulting in significant deleveraging”, with the potential HMRC settlement a bonus.
“We enter 2026 on the front foot with strong trading momentum and a focus on material free cash flow delivery,” he said.
On the outlook for the year ahead, revenues are guided up around 4% to £1.8 billion, with a significant step-up of EBITDA to around £101 million as the group expects margin expansion in nutrition and broader efficiency gains, assuming no material escalation in Middle East disruption.
Net debt is seen falling to between £110 million and £130 million through free cash flow of £25 million to £50 million and VAT repayments, assuming no significant escalation in Middle East disruption.
