THG Beats FY25 Forecasts, Signals Strong 2026 Start

Core Financial Performance

THG Plc reported a fiscal year 2025 adjusted EBITDA of £76.6 million, slightly exceeding analyst forecasts of £74.9 million. The company demonstrated a significant turnaround in the second half of the year, with revenue from continuing operations growing by 6.8% and EBITDA increasing by 14%, reversing declines seen in the first half.

Divisional Strength and 2026 Outlook

The positive results were driven by improving momentum across its Beauty and Nutrition divisions. For fiscal year 2026, THG reiterated its guidance, aligning with consensus expectations for an EBITDA of £101 million. This represents an anticipated growth of approximately 30%, supported by continued strength in the Beauty segment and margin recovery in the Nutrition division.

Financial Health and Strategy

The company projects generating free cash flow between £25 million and £50 million for FY26. It also anticipates a significant reduction in net debt, targeting a range of £105 million to £130 million. A potential cash inflow of around £78 million could be realized from a successful VAT claim against HMRC regarding protein powders.

Summary Outlook

THG is positioned for a strong start to fiscal year 2026, with revenue growth and margin expansion expected to continue. The company's guidance assumes no significant geopolitical disruptions, noting its limited revenue exposure of 1.5% to the Middle East.

FAQ

Q: What was THG's key financial result for FY25?
A: THG reported an adjusted EBITDA of £76.6 million, surpassing analyst expectations and showing strong second-half growth.

Q: What is the company's outlook for FY26?
A: THG expects EBITDA to reach £101 million, driven by growth in its Beauty and Nutrition segments and improved margins.

Source: Investing.com