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(Sharecast News) - Beauty and nutrition retailer THG reported a marked improvement in its preliminary fullyear 2025 performance on Thursday, returning to profitability as disposals and a strong second half helped drive a turnaround across the group.
THG said FY revenues rose 2.3% to 1.71bn, with secondhalf trading coming in around 15% ahead of consensus and significantly stronger than the first half, while adjusted underlying earnings came in at 76.6m, ahead of guidance but down from 83.3m a year earlier. Operating profits improved to 8.1m, compared with a 147.9m loss in 2024.
The FTSE 250-listed firm also highlighted that its balance sheet had been strengthened by a 162m reduction in gross debt and 103m in cash proceeds from its recent disposal of its Claremont sale business. Debt facilities were extended to 2029.
Looking to FY26, THG said it had made a strong start to the year, supporting expectations for revenue and adjusted EBITDA growth, with free cash flow forecast in the 25m-50m range.
Chief executive Matthew Moulding said: "Today's results reflect the strength of our business models and the exceptional execution by the team. I am pleased with how we have continued to transform THG during 2025, returning to consistent growth against a challenging macro-economic backdrop through disciplined investment in our brands and an unwavering focus on our customers worldwide."
As of 0820 GMT, THG shares were up 7.76% at 33.90p.
Reporting by Iain Gilbert at Sharecast.com
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