Stock Markets March 26, 2026

THG posts FY25 adjusted EBITDA ahead of expectations and signals strong start to 2026

Retailer sees improving momentum across Beauty and Nutrition, reiterates FY26 guidance with net debt reduction targeted

By Ajmal Hussain THG
THG posts FY25 adjusted EBITDA ahead of expectations and signals strong start to 2026
THG

THG reported FY25 adjusted EBITDA of
THG Plc reported adjusted EBITDA for the fiscal year 2025 of

Key Points

  • THG reported FY25 adjusted EBITDA of m, slightly above analysts' forecast of
  • Revenue and EBITDA improved in H2 2025 with continuing operations revenue up 6.8% on a constant currency basis, reversing a 2.5% fall in H1; EBITDA rose 14% in H2 after a 35% H1 decline.
  • Company reiterated FY26 guidance for 1m EBITDA and free cash flow of

Overview

THG Plc recorded adjusted EBITDA of for FY25, marginally exceeding analyst expectations of .

Revenue and EBITDA trajectory

The Manchester-headquartered retailer returned to revenue growth in the second half of 2025, with continuing operations up 6.8% on a constant currency basis following a 2.5% decline in the first half. EBITDA performance mirrored that recovery: after a 35% fall in the first half, EBITDA rose by 14% in the second half, pushing the group to full-year adjusted EBITDA slightly above consensus.

Division performance and early 2026 signals

THG said its Beauty division entered 2026 with revenue growth running ahead of the 5.4% pace it delivered in the second half of 2025, and the company highlighted a marked improvement in US performance within that segment. In Nutrition, management expects continued mid-to-high single-digit revenue growth driven in part by Myprotein expansion across offline channels, licensing and multi-category offerings.

FY26 guidance and balance sheet targets

The company reiterated its FY26 guidance, backing consensus expectations for adjusted EBITDA of 101m for the year, a level that implies roughly 30% EBITDA growth versus FY25 in analysts' models.

Management also guided to free cash flow generation between to $25m and

The group flagged a potential benefit from a 0% VAT ruling on protein powders; management said a successful claim against HMRC could produce an estimated 78m cash inflow if the claim is successful.

Balance sheet and exceptional items

Net debt is forecast to fall to a range of 5m to 233m in FY25.

Following a strategic review, the group has altered its Asia Nutrition operating model, which produced a cash exceptional charge of approximately 7m.

Geopolitical assumption

The company's FY26 guidance is conditioned on the assumption that there will be no material or prolonged escalation in the Middle East that could disrupt supply chains or consumer demand. THG noted that its direct revenue exposure to the region is limited to 1.5%.


Note: this report preserves the financial and operational details disclosed by the company without additional commentary or external data.

Risks

  • FY26 guidance assumes no material or prolonged escalation in the Middle East that would disrupt supply chains or consumer demand; the company has limited revenue exposure to the region at 1.5% - affecting supply chain and consumer retail sectors.
  • FY26 free cash flow guidance of depends on working capital - impacting cash generation expectations for investors.
  • The Asia Nutrition model change produced a cash exceptional charge of approximately 7m - a one-off impact on cash flow in the near term.

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