Annual Report
and Accounts | 2025
From a British start-up
to a global brand builder
Contents
Strategic Report
2 Our business model
4 Our investment case
6 Chair’s Statement
8 Chief Executive Officer’s Review
10 Our strategy
12 Our marketplace
14 THG Beauty
18 THG Nutrition
22 Chief Financial Officer’s Review
32 Section 172 Statement: Stakeholder Engagement
39 Non-Financial and Sustainability Information Statement
40 Our culture
42 Sustainability
52 TCFD
60 Risk management and informed decision-making
Governance
71 Corporate Governance Report
79 Audit Committee Report
84 Nomination Committee Report
89 Related Party Committee Report
91 Risk Committee Report
93 Sustainability Committee Report
95 Directors’ Remuneration Report
106 Directors’ Report
Financial Statements
112 Independent Auditor’s Report tothe members of THG PLC
118 Consolidated statement ofcomprehensive income
119 Consolidated statement offinancial position
120 Consolidated statement ofchanges in equity
121 Consolidated statement ofcashflows
122 Notes to the consolidated financialstatements
154 Company statement offinancialposition
155 Company statement of changes inequity
156 Notes to the Company financial statements
Additional Information
160 Alternative performance measures
162 Glossary
What we do
owner, headquartered in Manchester, UK ,
operating through two leading digital-first
online consumer businesses: THG Beauty
and THG Nutrition.
THG Beauty operates prominent online platforms including
Lookfantastic, Cult Beauty and Dermstore, offering a valued route
to market for over 1,000 third-party brands, alongside a specialist
portfolio of owned brands.
THG Nutrition, led by Myprotein, the world’s largest online sports
nutrition brand, spans multiple health and wellness categories,
delivering its products both directly to consumers and through
strategic offline partnerships worldwide.
More information online
Our website gives you fast,
direct access to a wide range
of Company information
thg.com
Continuing CCY revenue
growth percentage
+2.3%
Adjusted gross profit
£698.9m
2024: £727.5m
Adjusted gross profit margin
40.7%
2024: 41.5%
Statutory revenue
£1,717.9m
2024: £1,751.4m
Adjusted EBITDA margin
4.5%
2024: 4.8%
Statutory operating profit
£8.1m
2024: Loss £(147.9)m
Statutory loss after tax
£(63.7)m
2024: £(180.6)m
Adjusted EBITDA
£76.6m
2024: £83.3m
Financial highlights
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Additional InformationFinancial StatementsGovernanceStrategic Report
Strategic Report
Our business model
Our business model enables us to achieve our purpose:
to create iconic retail experiences in the beauty, health
andwellness markets.
Underpinned
by our values
Ambition
We think BIG.
Innovation
We do things differently.
How we operate
THG was born from a digital-first, UK D2C model, strategically expanding into high-growth
territories and selective physical retail.
What sets us apart
Product curation
Our sites have unique identities
offering a fresh and relevant mix
of own and third-party brands,
with new product listings targeting
trending segments within the
beauty, health and wellnessindustry.
Digital capabilities
We use data insights to continually
evolve the retail experience,
personalising the customer journey,
while leveraging AI toimprove
customer retention and lifetime
value.
Brand strength and reputation
We act as a voice of trust and
authority within the beauty, health
and wellness industry. Our reputation
is built on quality and value, the
foundations of our partnerships with
category-leading brands.
Channel breadth
and strategy
Our channel strategy is rooted in
a powerful digital-first model. We
amplify our extensive ecommerce
presence through strategic online
partnerships that enhance brand
visibility and engage new audiences.
This is complemented by a targeted
expansion into physical retail, further
diversifying our revenue streams
and building brand awareness.
Financial discipline
Our financial priorities are embedded
in our operating model and we are
committed to maintaining a strong
balance sheet while growing our
revenuesustainably.
read more on what enables
us to create value in our
investment case on pages
4and 5
see our Chief Financial
Officer’s Review on pages
22to 31 formore information
Curated products and
merchandising
We continually refine and evolve our product
offering and brand assortment to remain
current and competitive.
Our D2C websites and mobile apps are
designed to offer an engaging, frictionless
environment to browse, discover and purchase.
Retail and
distribution
The majority of our revenue is generated via
ecommerce from a range of distinct beauty
and health and wellness destinations.
Our core customers are beauty and wellness
enthusiasts seeking to enhance their regime,
treat concerns and improve performance.
Partners
Relationships with our global brand partners
and retailers are imperative to our success,
underpinned by brand investment, pricing
value and access to a broad, engaged
customer base.
Product discovery
and innovation
We collect millions of insights from our
global customer base, feeding our innovation
pipeline and brand curation.
Engaging with consumers and analysing
trends supports our buying and trading
strategies on a localised level.
THG PLC Annual Report and Accounts 2025
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Our vision is to be the global
online leader in beauty and
sports nutrition.
How we generate value
We generate financial and non-financial value
through our two businesses.
Collaboration
We work together.
Decisiveness
We make bold decisions.
Leadership
We lead by example.
Group revenue by region
Group revenue by business
53%
17%
20%
10%
35%
65%
UK £908.9m
US £297.0m
Europe £351.0m
ROW £160.1m
Beauty £1,107.9m
Nutrition £609.1m
THG Beauty
Retailer of prestige beauty brands through online
retail websites with digital leadership in key markets:
the UK and the US.
THG Beauty’s ambition is to be the global digital partner
of choice across the beauty industry, supporting the
channel shift to online.
THG Nutrition
Retailer of sports nutrition supplements and health
and wellness products, led by the world’s largest
online sports nutrition brand, Myprotein.
THG Nutrition’s ambition is to maintain its global
recognition as a trusted multi-channel nutrition and
wellness brand for consumers, renowned for quality,
value and innovation.
Who we create value for
We aim to deliver sustainable
growth for our stakeholders.
Suppliers
We promote open and transparent working
practices with fair terms of business.
Our People
We have an experienced and dedicated
workforce, and we aim to ensure THG is an
inclusive and supportive environment with
career development opportunities.
Partners
We collaborate for mutual commercial success
through new routes to market, category
expansion and distribution of our own-brand
product.
Society and Communities
We adhere to evolving ESG best practice and
make steps to understand and address our
impact to drive positive change.
Customers and Consumers
We establish a relationship of trust through
frictionless, high-quality retail experiences,
supporting health and wellness regimes and
product discovery.
Shareholders
We create value for Shareholders through
a focus on sustainable growth, responsible
capital allocation and balance sheet
stewardship.
read more about our stakeholder engagement
on pages 32 to 38
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Strategic Report
Our
investment
case
Sustainable long-term
growth opportunity
from sizeable consumer
endmarkets
• Global megatrends continue to underpin
sustained growth in health and wellness
categories
• Addressable market growth in both
established and emergingterritories
Digital-first and vertically
integrated consumer
brands group, comprising
two market-leading
businesses
• THG Beauty: Number one pure-play online
specialtybeautyretailer
• THG Nutrition: World’s largest online
sports nutrition brand, Myprotein
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Utilising organic levers
andnew product innovation
to accelerate market
sharegrowth
• In-house manufacturing facilities
expediting speed to market
• Penetration of existing markets and
expansion into adjacent categories
Active global customer
base with increasing loyalty
and lifetime value driven by
high-repeat categories
• Multi-channel distribution increases
brand awareness, trust andaccess
• Direct-to-consumer model enables
greater customer insights, supporting
further market penetration and
productdiscovery
Free cash flow outlook
provides capital allocation
optionality
• Targeting continued progression to a
neutral netcash position
• Reinvestment in selective strategic growth
opportunities
see Chief Financial Officer’s Review on
pages 22 to 31
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Strategic Report
Chair’s Statement
“ Innovation remains at the heart
of THG and was a critical driver
of our success during 2025.”
see the Corporate Governance
Report on pages 71 to 78 for more
information
see S172 on pages 32 to 38 for
more information
It is with great pleasure that I report on
2025,a year characterised by both delivery
and stability. We not only delivered on our
strategic priorities and returned the Group
toprofitable continuing CCY revenue
growth, but also cemented the stability of
our simplified business model and, in turn,
established a robust platform for future
progress. We finished the year as a member
ofthe FTSE 250, enhancing our market
visibility and liquidity.
A focus on delivery
Our primary objective for 2025 was clear:
to deliver tangible results. I am pleased to
confirm that we executed our plans with
discipline and achieved that goal. Underpinned
by the strategic repositioning and brand
refresh previously undertaken, we delivered
a significant strategic turnaround in THG
Nutrition and saw the Myprotein brand return
to strong revenue growth.
In THG Beauty, our focused execution on
profitable categories and key markets
has continued to drive a market-leading
performance and further strengthen
our position as a global online leader in
prestigebeauty.
Across the Group, our commitment to financial
discipline has delivered a markedly improved
future cash flow profile, lower borrowings
and a more secure long-term balance sheet
following the refinancing in April.
Establishing stability
Building on the transformative changes which
took place at the start of the year, notably the
demerger of THG Ingenuity, the focus in 2025
was on embedding stable foundations across
the Group to support the simplified business
model. Largely due to the commitment and
hard work of CEO Matthew Moulding and his
Senior Management team, the simplification
of our structure into a focused beauty and
nutrition business is now complete, providing
a clear and understandable proposition
forinvestors.
This structural stability is underpinned by a
rigorous approach to financial management,
a disciplined focus on delivering Shareholder
value and a commitment to the highest
standards of corporate governance. The
Board and its Committees ensure that a
robust oversight framework is in place which
provides the platform required for sustainable,
long-term growth.
Driving innovation
Innovation remains at the heart of THG and was
a critical driver of our success during 2025.
Our omnichannel strategy for THG Nutrition,
particularly the expansion into physical retail,
has unlocked significant new avenues for
growth and demonstrated our ability to adapt
to changing consumer behaviours.
In THG Beauty, our innovation has been
focused on the customer experience,
leveraging data and technology to develop a
unified loyalty programme. This programme
serves to deepen our customer relationships
and provides a powerful engine for
personalised engagement.
With the customer front of mind, we remain
invested in our quality and speed of delivery
commitments, an important retention and
acquisition tool.
We continue to innovate in both our product
development and brand partnerships, ensuring
our brands remain at the forefront of the
wellness and beauty industries. Aligning our
proposition with category-leading brands
introduces us to new audiences, broadens
ouraddressable market and enhances our
overall visibility.
New ways of working
The achievements of 2025 were made
possible by our evolving ways of working.
A culture of collaboration, agility and
accountability has been essential and the
partnership between the Board and the Senior
Management team has been highly effective,
supporting swift and decisive strategic action
when required.
I would like to commend all our colleagues
for embracing these new ways of working;
their dedication and adaptability have been
instrumental in ensuring that we execute
and deliver against our objectives. We
remain committed to fostering a culture that
empowers our people to innovate and excel.
Outlook for 2026
We look ahead during the current year with
confidence, and we will continue to build
upon the solid foundations established in
recent years. Our focus will remain firmly
on delivering against our strategic priorities,
underpinned by the operational and financial
stability we have secured.
We will continue to invest in innovation to
stay ahead of the curve in our core markets
and, most importantly, we will continue to
nurture our effective ways of working, ensuring
we remain an agile and execution-focused
organisation.
I am confident that by continuing to focus on
these core themes, we will deliver significant
and sustainable value for our Shareholders in
the year ahead and beyond.
Charles Allen,
Lord Allen of Kensington, CBE
Independent Non-Executive Chair
25 March 2026
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Stability
and
Strength
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THG PLC Annual Report and Accounts 2025
Strategic Report
Chief Executive Officer’s Review
Our 21st year in business has been a ‘coming
of age’ moment: A year of accelerating
momentum, marked by a return to continuing
CCY revenue growth, decisive strategic actions,
and a clear validation of our long-term vision.
We have simplified our structure, sharpened
our focus on our key territories and brands,
and strengthened our financial foundations.
•
We delivered our first full year of Group
continuing CCY revenue growth since 2021,
supported by an encouraging second half
and clear exit momentum. This reflects the
impact of strategic changes across the
business, theresilience of our brands and
the work ofour dedicated teams.
•
We significantly simplified the Group.
Following the demerger of THG Ingenuity
at the start of the year, we completed
the disposal of Claremont Ingredients,
delivering a strong return on our investment
and accelerating progress towards a net
cash balance sheet.
•
THG Beauty delivered a robust second-half
recovery, reflecting our focus on prioritising
higher-margin territories and categories.
Concentrating resources where we have a
distinct advantage has delivered impressive
UK market share gains and returned the
business to revenue growth.
•
It was a landmark year for THG Nutrition,
where our strategy to build an omnichannel
presence is delivering phenomenal results.
I am particularly pleased with our offline
expansion, which is putting increasing
numbers of Myprotein products on shelves
and reaching millions of new customers.
•
Licensing agreements with category
leaders including Müller, Iceland and
Jimmy’s Coffee drove sales of over
43million Myprotein units into retail during
2025, extending the brand into new
categories and reinforcing our reputation
forquality and innovation.
•
We secured our long-term capital structure
by refinancing our debt facilities, materially
reducing gross debt while retaining the
liquidity to continue investing in the exciting
growth potential of our Beauty and Nutrition
businesses.
On remuneration, I am pleased to confirm
that, consistent with each of the past five
years since becoming a public company,
theExecutive Directors refused to accept any
salary increases during the 2025 financial
year. This approach has continued into 2026,
with no increases applied to either my role or
that of the Group’s CFO.
As has been my practice since IPO, I again
waived the maximum amount of my annual
salary permissible by law, resulting in me
receiving only the UK’s annual minimum wage.
Over the past five years, the cumulative value
of salary waived now totals £3.63m, before
taking into account bonus and share-based
awards that have also been waived during
thisperiod.
During 2025, the Group again made a
charitable donation equivalent to the value of
the salary I sacrificed in the year. The donation
supported the development of accommodation
for people experiencing homelessness
acrossManchester.
For the fifth consecutive year, the Executive
Directors also waived any participation in the
2025 annual bonus plan.
THG Beauty: Brand curation and
market leadership
Beauty retail has demonstrated both
disciplineand agility. A clear focus on
profitable sales and core UK and US markets
drove a strong return to growth in the second
half of the year, culminating in our strongest
Q4 revenue performance since Q4 2021. This
result reflects our commercial discipline and
commitment to progressing customer value.
The UK, our largest territory, was a standout
performer, with Lookfantastic delivering
exceptional growth and market share gains,
supported by our record-breaking Advent
season and the successful launch of over 80
new brands. This underscores our position as
the prestige beauty destination of choice for a
growing and increasingly loyal customer base.
Alongside driving our retail platforms, we
undertook a significant life cycle investment
across our own brand portfolio.
This was a deliberate programme to refine
formulations, enhance product appeal and
strengthen long-term brand positioning.
While this project constrained growth in parts
of the portfolio during the first half of the
year, the clear benefits were evident as the
year progressed. The successful relaunch
of the Ameliorate range and the improved
second-half performance at Perricone MD
demonstrate the value of this work. We also
expanded the reach of our luxury spa brand,
ESPA, by launching in over 100 M&S stores,
building greater brand visibility with a new
audience.
THG Nutrition: Accelerating
momentum through omnichannel
strategy
A fourth consecutive quarter of revenue
growth was delivered following the transitional
prior year and rebrand. While the year
presented challenges and margin pressure
with record whey commodity prices, we made
the strategic decision in the second half
to absorb some of these costs. This was a
deliberate choice to support our customers,
protect our market-leading position, and invest
in long-term loyalty and market share growth.
Our move into offline channels is transforming
the scale and awareness of Myprotein. From
a standing start only a few years ago, we now
have a presence in over 40,000 doors globally.
A cornerstone of this success is our ‘6-aisle
strategy,’ designed to integrate Myprotein into
every part of our customers’ daily lives and
shopping habits. This has been brought to life
through exciting collaborations with
category-leading partners. Our partnership
with global confectionery giant Mars allows
customers to enjoy iconic flavours in their
favourite protein products. In the freezer aisle,
our long-term partner Iceland expanded its
exclusive range to 25 innovative Myprotein
products, including high-protein ice creams and
even breakfast omelettes. Our collaboration with
Müller created the UK’s No.1 protein dessert,
and looking ahead, our recently announced
agreement with Greencore, a European leader
in convenience, will see Myprotein branded
food-to-go launch across major supermarkets.
“ A deliberate strategy to simplify the
Group, enhancing our operational focus
on the high-growth markets within
Beauty and Nutrition.”
THG PLC Annual Report and Accounts 2025
8
see the Chief Financial Officer’s Review on pages 22 to 31 for more information
see our strategy on pages 10 and 11 for more information
These partnerships take the Myprotein brand
far beyond its core D2C offering, placing us in
thehands of millions more consumers.
Strategic simplification while
overcoming challenges
The key decisions taken to demerge THG
Ingenuity, refinance and de-gear, and
subsequently divest Claremont Ingredients
have been transformative. These actions
represent a deliberate strategy to simplify
the Group, enhance our operational focus on
the high-growth markets within our Beauty
and Nutrition businesses, and create greater
transparency and value for our Shareholders.
The significant cash proceeds from the
Claremont sale have strengthened our balance
sheet and highlight the substantial value
embedded across the Group’s portfolio.
We have proven our ability to build, scale and
monetise valuable assets while protecting our
core operational capabilities through long-term
supply agreements.
While the year was defined by revenue growth
in our key markets, we also faced headwinds.
The record whey prices in Nutrition and the
strategic pivot in Beauty required disciplined
execution. Our team’s ability to navigate these
challenges, while balancing customer support
with our long-term financial health, has been
instrumental in the robust performance we
delivered in the second half of the year.
Looking ahead
We enter 2026 with powerful trading
momentum and a clear focus to deliver
sustainable, profitable growth and increase
free cash generation.
We will continue to build on the incredible
success of Myprotein’s global offline and
licensing strategy and leverage our digital
leadership in Beauty to deepen customer
relationships through innovation and
personalisation.
In closing, I would like to express my profound
gratitude to our employees. Their passion,
dedication and resilience have been central
to our success in a year of significant change
and progress.
Matthew Moulding
Executive Director and CEO
25 March 2026
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THG PLC Annual Report and Accounts 2025
Strategic Report
Our strategy
Our goal is to deliver sustainable growth for our
stakeholders, through a focused strategy on priority
territories and high-growth categories and channels
where we have a right to play.
What it means
Sustainable Group revenue growth and margin expansion
THG Beauty
•
Maintain online leadership in UK and US home markets
•
Build brand affinity through accessible authority in
prestigeskincare
THG Nutrition
•
Return the business to growth
•
Diversify territory, channel and category mix to reflect the record
global consumer demand for protein, taking intentional trading
decisions to protect margins and retain market share while whey
commodity prices remain elevated
2025 progress
THG Beauty
•
UK market outperformance in Q4, supported by growth in new
and LTM Active Customers
•
Medium-term Adjusted EBITDA margin achieved
•
Completion of international reset strategy, de-emphasising sales
in parts of Europe and Asia
THG Nutrition
•
THG Nutrition delivered its fourth consecutive quarter of revenue
growth in Q4 2025 (+12.2% (excluding Asia)), largely driven by
selective product pricing and strong growth in adjacent categories
notably offline retail and gross margin accretive activewear
andcreatine
•
The strategic use of social commerce and marketplace
channelshave also contributed to online growth, fuelled by
the brand repositioning which unlocked multiple new revenue
streams offline
Build leadership positions in core territories and categories
What it means
Develop effective, high-quality products suitable for local tastes and
markets
THG Beauty
•
Differentiate by securing exclusive products and gift edits
•
Enhance own-brand beauty portfolio with science-backed
innovation
THG Nutrition
•
Expand category presence where usage occasions aregrowing
•
Further growth in licensing ranges and formats including
Myprotein x Jimmy’s Iced Coffee, and Myprotein x Vimto
2025 progress
THG Beauty
•
Biggest ever year for new brand launches
•
Biggest ever own-brand launch: Biossance eye serum
THG Nutrition
•
The growth in MP Activewear indicates a broadening of our
appeal beyond the traditional sports nutrition market, further
diversifying both revenue and the addressable customer base.
Over half a million women’s leggings were sold during the year
with activewear c.12% of Myprotein online sales (c.8% FY 2024)
•
No.1 brand for loyalty in chilled protein ready meals:
Myprotein x Kirsty’s lunch pots
1
Launch innovative and relevant products to global consumers
Myprotein x Müller
Partnership momentum delivering record
sales in June 2025, with extension of the
range playing a valuable part in generating
brand visibility.
•
Voted No.1 protein dessert (UK retail):
Myprotein x Müller Protein Mousse
3
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10
Grow the Active Customer base and drive loyalty
What it means
Increase the online customer numbers through retention and new
customer acquisition
THG Beauty
•
Grow the number of Lookfantastic loyalty programme members
THG Nutrition
•
Develop physical footprint by increasing the number of doors
where Myprotein products can be purchased
2025 progress
THG Beauty
•
Revenue from returning customers (89%) reflects continued
loyalty programme success and its effectiveness in encouraging
and rewarding purchases with spend per account >30% higher
than non-loyalty members
2
THG Nutrition
•
The growth of our multi-channel approach continued at pace
with new retail listings secured both in the UK and internationally.
Myprotein products are now available in over 40,000 doors
worldwide
•
We have made significant strides on our licensing strategy
unlocking category credibility in dairy (Myprotein x Müller) and
on-the-go lunch pots (Myprotein x Kirsty’s)
Enhance brand equity through D2C channels
What it means
Improve brand awareness and customer trust
THG Beauty
•
Growth in brand awareness across all platforms, with customers
increasingly recognising us for brand assortment, convenience
and value for money
THG Nutrition
•
Maintain Myprotein’s position as the world’s largest online sports
nutrition brand
2025 progress
THG Beauty
•
THG Beauty UK outperformed the market following a strong Q3
2025, supported by growth in new and LTM active customers
THG Nutrition
•
We have successfully leveraged new platforms to enhance the
customer experience and drive revenue. Myprotein claimed the
title of the highest-growth brand on TikTok Shop across the entire
health and wellness category in Q1, a channel that continues to
deliver exceptional results
•
Developing an omnichannel experience to support brand
awareness has been fundamental in enabling us to enhance the
long-term margin and growth potential of the business, further
developing Myprotein’s position as a globally prominent active
nutrition brand
1. Nielsen panel data taken from total outlets, for the latest 24 week period ending 06.09.2025 vs previous 24 week period.
2. Circana Market Growth; Circana UK Total Market 04/01/2025 – 27/12/2025.
3. IRI data of GB average units sold per store during the 12 week period ending 27.09.2025.
Ameliorate enters a bold new era
While the look has evolved, the science remains the same: science-led skincare with
results you can trust.
Ameliorate entered a bold new era, officially launching their rebrand with a fresh new look,
andsmarter, future-proof packaging:
•
Sustainable packaging – Ameliorate has moved to Prevented Ocean Plastic (POP),
reducing our plastic footprint while protecting oceans for the future.
•
Streamlined range and global compliance – focused on hero products for stronger global
consistency, opening the door to expansion in EU and US markets
•
Improved quality and value – refreshed and elevated packaging, with improved
componentry.
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Strategic Report
Beauty
The global total addressable market for beauty
and personal care was valued at £455bn
in 2025, growing by c.5% year on year. The
premium segment, valued at £135bn in 2025,
is set to expand at a CAGR of c.5% between
2025 and 2029 and is anticipated to be
valued at £173bn by 2029
1
.
Key trends
The UK online beauty market continues to
perform strongly, with the UK premium beauty
market delivering double-digit growth in 2025
2
.
As the leading online beauty retailer in the UK
with an emphasis towards prestige brands, we
are well positioned in this fast-growing market,
with THG Beauty outperforming the UK market
in the critical fourth quarter trading period
2
.
Another of our key markets, the US, is leading
the way with ecommerce accounting for 41%
of all beauty and personal care sales
3
, ahead
of its overall online retail penetration rate.
Theonline global beauty and personal care
market continues to grow, supported by
digitalpenetration. Consumers are also
utilising digital platforms to research
ingredients, tocompare formulations and
review guidance on skincare routines and
product usage. Technological developments
underpin an immersive experience that
increasingly surpasses physical retail, aiding
product discovery.
Recent trends also highlighted accelerating
consumer interest in skin-first complexion
formats, at-home beauty devices and Korean
beauty, each reflecting the same underlying
shift towards efficacy, routine-building and
results-driven purchasing.
Beauty spending remains robust as
consumers consider beauty products an
integral part of their daily routine, providing a
high degree of resilience to purchases through
the economic cycle. The well-documented
‘lipstick effect’, whereby consumers facing
economic headwinds maintain beauty
spending rather than cutting back, treating
premium products as an accessible form of
everyday indulgence, means the category has
historically strengthened during downturns.
Due to the factors above, growth in the
premium beauty market has outpaced that
of the mass market in recent years
1
. With its
focus on the premium segment of the beauty
market, THG Beauty is ideally placed to benefit
from further premiumisation.
Our position
Through our retail sites and owned beauty
brands, we build deep, long-term relationships
with both brand partners and consumers.
Our scale and platform capabilities enable
us to operate across multiple international
markets, accelerate new product development,
and introduce customers to products through
discovery-led shopping journeys.
This underpins our leading positions in our
core territories, the UK and the US, while
providing a strong foundation for further
international growth.
In addition, the breadth and quality of data
generated by our digital customer base is a
meaningful differentiator. These data-driven
insights inform everything from merchandising
and content strategy to product innovation
and brand curation – particularly for emerging
brands seeking targeted exposure and rapid
feedback loops. The regimen-based nature
of our key categories, especially skincare and
haircare, further strengthens our proposition:
consumers often build custom routines suited
to their own needs, creating opportunities
to deepen engagement through education,
expert-led guidance and personalisation.
Finally, we benefit from the structural
advantages of ecommerce. Our platforms
provide effectively unlimited shelf space,
enabling a significantly wider assortment than
traditional bricks-and-mortar retailers can
offer. This breadth, powered by our content,
community and personalisation, positions us
as a destination for discovery and education,
supporting higher conversion, repeat purchase
behaviour and lifetime value.
Our integrated beauty ecosystem, combining
retail platforms, own brands, product
development capability and manufacturing,
enables us to deliver a differentiated digital
beauty experience for consumers and a
compelling, performance-driven route to
market for brands.
Our marketplace
Future outlook
Looking forward, we anticipate the
following key trends to shape the beauty
market in 2026 and beyond:
•
Consumers increasingly demanding
high performance formulations, with
search growth seen for peptides,
retinol and niacinamide, as well as
emerging active ingredients such as
PDRN, indicating rising ingredient
literacy among consumers.
•
In 2025, searches for skin-first
complexion products surged,
with these products significantly
outperforming traditional colour
cosmetics formats. In 2026 we expect
to see increased focus on these
skin-first cosmetics formulas.
•
Sales of LED devices rose significantly
in 2025, reflecting growing overlap
between beauty and wellness. As
consumers are increasingly looking
for value and convenience, at-home
beauty devices are expected to
continue growing in 2026.
•
Lash serums and treatments were the
fastest-growing cosmetics category
for THG Beauty in 2025, signalling
a shift away from high-maintenance
extensions and false lashes, and we
expect this trend to continue in 2026.
•
Korean beauty (“K-Beauty”) continues
to grow strongly in the Western
Europe and US markets, with
broad-based growth across suncare,
serums and sets, driven by efficacy,
price accessibility and formulation
leadership. In 2026, K-Beauty is
expected to have a major influence
on global formulation standards
due to significant levels of product
awareness.
1. Euromonitor – Passport – 2025 market size data,
Beauty & Personal Care.
2. Circana Market Growth; Circana UK Total Market
04/01/2025 – 27/12/2025.
3. Nielsen.
THG PLC Annual Report and Accounts 2025
12
Nutrition, health and wellness
The global nutrition and wellness sector is
valued at over £245bn
1
, with THG Nutrition’s
primary focus expanding beyond the £24bn
2
sports nutrition market to adjacent segments
including activewear (£179bn) and vitamins
(£27bn).
Key trends
The global nutrition market continues to
be shaped by several powerful trends.
Consumersare increasingly health-conscious,
seeking nutritionally balanced products
and protein-enhanced options. While
higher-income countries currently lead in
adopting these products, growing economic
development in lower-income regions is
expected to drive future demand.
Weight management drugs, including GLP-1
receptor agonists, are also influencing
consumer behaviour. As these treatments
become more widely used, they are reshaping
purchasing decisions – accelerating interest
in higher-protein, nutrient-dense products,
and reinforcing wider shifts toward healthier
lifestyles and functional nutrition. Furthermore,
government and industry directives continue
to advocate increased daily protein intake.
Digital growth remains another structural
tailwind, particularly in developing markets
where ecommerce penetration remains
relatively low. In addition, consumers are not
only purchasing online, but are also using
digital platforms to research ingredients and
seek guidance on product choice and usage.
In parallel, short-form media has become a
significant driver of discovery and conversion.
Brands that can translate product efficacy
into clear, engaging and educational content
are increasingly well placed to win attention,
buildtrust and convert demand across a
broadset of consumer segments.
Our position
The sports nutrition industry remains highly
fragmented, comprising a small number of
scaled global brands alongside a long tail of
smaller, locally focused players. As the largest
online sports nutrition brand globally, and
amongst the most internationally diversified,
Myprotein is optimally positioned to benefit
from the continued shift to ecommerce across
markets. The depth of localisation embedded
within our technology, marketing and
operating platform, further positions Myprotein
to reach new audiences.
Our direct-to-consumer model also remains
a core strength. It enables direct engagement
with consumers, a personalised end-to-end
shopping experience, and rich data insights
into customer behaviour. These data
advantages inform merchandising, content
and product innovation, helping us to respond
quickly to emerging trends and refine our
proposition by market and customer segment.
These advantages are further complemented
by our vertical integration in product
development and manufacturing, which
enables shortened launch cycles, high control
over product quality, improved availability and
the agility to adapt to changes in demand.
Alongside our D2C leadership, we have
broadened our route-to-market in recent years
through selective expansion into traditional
retail channels. This diversification has
broadened our revenue mix, increased brand
visibility and enabled us to reach a wider range
of consumers and purchasing occasions,
including those who prefer in-store shopping
or convenience formats. Together, these
initiatives strengthen our presence across both
online and offline channels and position the
brand to capture a wider set of category and
distribution opportunities.
Future outlook
Looking ahead, we anticipate the
following key trends to shape the
nutrition, health and wellness market
in2026 and beyond:
•
A global shift towards health-focused
protein intake could cause demand
to rise by +37%. This would equate
to an incremental market value of
approximately $650bn. Protein is
evolving from a generic health claim
to a multifunctional driver of wellness
– it is no longer niche, but mainstream.
70% of global consumers believe
they are proactive in managing their
health,and 57% say they prioritise
‘ageing well’ more than they did five
years ago
1
.
•
Weight management drugs are
increasingly influencing consumer
behaviour, reinforcing structural
shifts towards protein-rich and
nutrient-dense products – a demand
tailwind for Myprotein.
•
Consumers are increasingly adopting
‘on-the-go’ routines, accelerating
growth in convenience formats such
as bars, snacks, ready-to-drink and
single-serve offerings. Myprotein
is well placed to win here through
innovation in taste, nutrition and
accessibility, supported by increasing
brand awareness and the capability
to develop and scale products quickly
across markets.
•
Digital-first education and short-form
media are reshaping how consumers
discover and evaluate nutrition
products. Brands that simplify
complex nutrition through clear,
verified product claims, quality
content and practical guidance stand
to gain share – an advantage for
Myprotein given our D2C first model,
rigorous focus on product quality and
testing, and influencer-led marketing
approach.
•
Rising ecommerce penetration and
improving incomes in developing
markets, alongside growing
investment in health and wellness,
provide a tailwind for sports nutrition
and wellness demand. Myprotein
is ideally positioned to capture this
demand through strong localisation
and international infrastructure.
1. Euromonitor – Passport – 2025 market size data, Performance Apparel, Sports Nutrition, Vitamins and Dietary Supplement, Weight Management and Wellbeing.
2. Euromonitor – Passport – 2025 market size data, Sports Nutrition.
1. NielsenIQ’s Global State of Health
& Wellness 2025.
THG PLC Annual Report and Accounts 2025
13
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Strategic Report
THG
Beauty
THG Beauty operates in the prestige segment of the
global beauty market, which comprises a number of
brands owned by global beauty and consumer groups
alongside a range of independent brands. Prestige brands
are generally characterised by a higher price point, more
selective distribution channels, ahigh level of active
ingredients, a more curated product offering and richer
brand heritage than mass-market beauty brands.
With an unparalleled attention to detail,
we act as a trusted source for product
discovery and education, alongside offering
a frictionless purchasing experience. We
strive to maintain digital and category
leadership by constantly evolving to meet
customer needs and shifting beauty trends.
Revenue growth of +0.2% (continuing CCY)
and EBITDA margins within medium-term
guidance delivered through strategic
product curation and exclusive launches,
driving long-term profitability.
Business overview
•
Owner and operator of three major online
beauty retailers: Lookfantastic, Cult Beauty
and Dermstore.
•
Critical route to market for over 1,000
brands in high-repeat, regime-based
categories with a focus on the prestige
segments of skincare, haircare, fragrance
and cosmetics.
•
Own brand portfolio with clinically proven
ingredients focused on the more prominent
growth opportunities in prestige skincare,
spa and specialist products.
•
New product development through
in-house, vertically integrated
manufacturing capabilities in the UK and
USfor own brand and third-party brands.
•
Highly loyal customer base with 89%
of THG Beauty revenue generated from
returning customers.
THG Beauty’s strategy is to deliver a leading
digital customer experience, product
assortment and elevated brand positioning,
while generating sustainable, profitable
growth.
Its strategic priorities are:
1. to maintain its position as the world’s
largest online pure-play prestige beauty
retailer;
2. to support global beauty brands in
addressing the channel shift in marketing
spend from offline to online;
3. to develop a digitally focused portfolio of
prestige owned brands, providing margin
enhancement and differentiation; and
4. to provide innovation and product
development services directly to the
beautyindustry.
Beauty edits
Beauty boxes and specialist edits serve as a strategic tool for enabling product discovery
and reaching new, dedicated audiences, particularly through successful collaborations
with our influencer networks. By creating limited-edition curated boxes featuring products
across categories, we offer customers unparalleled value and innovation.
The category, which includes our highly popular beauty advent calendars, is
margin-enhancing and delivered over 20% revenue growth in the year, supported by an
increase in UK subscriptions for monthly edits. Beauty boxes also remain a powerful and
effective tool for customer acquisition and retention.
THG PLC Annual Report and Accounts 2025
14
Operational overview
This year, our core priority was to sharpen our focus on meeting
our customers’ needs. We accomplished this by using our
loyalty programmes to offer unmatched value and by improving
our website and mobile applications to aid product discovery
and streamline the purchasing experience. In addition, through
the year our territory mix shifted to focus on home markets,
where fulfilment efficiencies created higher margin, the effect
ofwhich decreased Active Customers and total orders. Now
with a healthier and more engaged customer base we have seen
continuing CCY revenue growth and sustained margins, with 89%
of ourrevenue now generated by existing customers.
Across categories we saw growth in fragrance, haircare,
cosmetics and skincare, each at a rate that outperformed
the totalUK beauty market
1
. This achievement comes from a
relentless focus on category curation. By ensuring we balance
newness with established and reputable brands, we have
successfully deepened our market penetration in both established
and high-growth segments.
In parallel, we strengthened our relationships with suppliers to
create mutually beneficial partnerships. Our industry-leading retail
media proposition provided suppliers a direct platform to connect
with a large, engaged audience, helping strengthen supplier
relationships. Furthermore, events like our Beauty Supplier
Summit have fostered collaboration and shared insights into the
future of the beauty industry. These initiatives have enabled us
to secure Lookfantastic exclusives from trending brands, further
strengthening our overall proposition.
Active Customers overall reduced YoY due to the intentional
strategy to de-prioritise parts of Europe, Asia and Australia.
Focusing on the UK, we’re seeing a more engaged customer
base, with an increase in AOV, order frequency and total orders
providing evidence for a healthy and engaged customer base in
that territory.
Ameliorate completed a full rebrand in 2025, including changes
to their whole packaging range, and now participates in the
Prevented Ocean Plastic™ (“POP”) scheme, ensuring that:
•
Packaging is sourced from manufacturers using Prevented
Ocean Plastic™; so where you see the POP symbol on our
packaging, it means one or more packaging components
include at least 30% post-consumer recycled content (“PCR”).
•
Over 50,000 tonnes of plastic have been prevented from
entering oceans using this scheme; that’s more than
2.5billionbottles.
Adjusted EBITDA
5.9%
2024: 6.1%
Active Customers
2
7.5m
2024: 7.9m
Revenue
£1,107.9m
2024: £1,171.1m
Total orders
3
15.9m
2024: 16.1m
Continuing CCY growth rate
+0.2%
2024: +4.6%
Gross margin
39.3%
2024: 40.0%
Revenue from returning customers
5
c.89%
2024: 85%
Average order value
4
£66
2024: £66
Lookfantastic loyalty members
3.5m
2024: 2.8m
App participation
6
c.29%
2024: 27.5%
1. Circana Market Growth; Circana Total Market 04/01/2024 –
27/12/2025.
2. Active Customers is defined as customers who have purchased at least
once within the period.
3. Number of orders is defined as orders fulfilled within the period.
4. Average order value is defined as the average order value per customer
order on a gross revenue basis, inclusive of any shipping revenue.
5. Sales of all orders from customers shopping more than once with THG.
6. Percentage of revenue made through mobile applications.
THG PLC Annual Report and Accounts 2025
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Additional InformationFinancial StatementsGovernanceStrategic Report
Strategic Report
THG Beauty continued
Own brand portfolio
Our own brand proposition is supported by
manufacturing capabilities in the UK and US,
led by our flagship skincare brands – Perricone
MD, Biossance and ESPA.
We have seen sustained momentum through
2025, with brand investments in packaging
and formulation in Perricone MD and ESPA
yielding results. B2B and global spa listings
have helped to build on brand visibility and
awareness and leveraged access to new
markets.
Perricone MD showed improved performance
following strategic investment in brand and
formulation. The ESPA brand also saw a
significant increase in visibility, with 60 SKUs
launched across more than 100 M&S stores
and online. In line with our sustainability goals,
the Ameliorate product line was successfully
relaunched, now featuring Prevented Ocean
Plastic™ in its packaging.
Financial performance
During 2025, THG Beauty delivered revenue
of£1,108m (-5.4% YoY; +0.2% Continuing CCY).
Following a slower than anticipated start
to the year, THG Beauty gained momentum
through the second half, delivering H2 revenue
growth of +5.4%.
As part of our intentional strategy to
de-prioritise parts of Europe, Asia and
Australia, the UK and Ireland delivered
revenuegrowth of 6.3%. This standout
performance was underpinned by strong
customer health metrics. We have effectively
leveraged our established distribution network
and strong brand recognition to provide
a market-leading online proposition and
high-margin sales in home territories.
Although Adjusted EBITDA decreased, our
margin remained in line with medium-term
guidance, establishing a more refined
foundation for future performance. The
strategic actions implemented in 2025 are
expected to deliver sustained revenue and
EBITDA in 2026, as we continue to prioritise
our home markets to drive sustainable growth
towards our target margin.
Strategic highlights
During 2025 we undertook strategic
investment to keep our proposition fresh
and to aid product discovery. As part of this
we saw a record-breaking sale of our 2025
advent calendar campaign and launched over
80 new brands, including the prestigious Gucci
Beauty. Revenue from new brands increased
by +40% compared to the previous year.
By the end of 2025, the Lookfantastic loyalty
programme had grown significantly, with
membership increasing by 0.6 million to over
3.5 million customers. This programme offers
exclusive benefits like early access to sales
and the ability to earn points on purchases,
providing valuable insights into customer
spending habits. The data reveals that loyalty
customers spend approximately 32% more
than non-loyalty customers, with higher
order frequency and AOV. We also enhanced
our mobile applications with a more intuitive
and personalised interface, implementing
AI tools to improve product discovery and
streamline the purchasing process. These
mobile app improvements, which have led
to a year-on-year increase in app revenue,
have been instrumental in deepening our
understanding of customer purchasing
habitsand ensuring we can meet their
evolving needs.
Across our manufacturing businesses we’re
taking responsible action to minimise our
impact on the environment and innovate for
the future of the beauty industry. Through
our partnership with Clean Food Group, THG
Labs has launched CLEAN OIL™ 25, the
first sustainable alternative to traditional oil
and fat ingredients to be approved in the
United Kingdom, Europe and United States.
The approval marks a major milestone in
the commercialisation of this technology,
unlocking access to the high-value global
personal care and cosmetics sector.
Retail media
THG Beauty Media enables brands to connect with a large and engaged audience through
bespoke, data-driven campaigns.
Brand partners gain access to crucial data and insights that unlock significant growth
opportunities. By leveraging our strategic partnerships with data experts like Criteo,
LiveRamp and Zitcha, partners can understand brand loyalty, optimise purchase frequency,
and turn shopper data into actionable strategies that measurably drive marketshare.
By launching THG Beauty Media, we are tapping into the rapidly growing retail media market,
which is projected to exceed £1bn in the UK by 2025. This creates a significant new revenue
stream for the business and strengthens our relationships with key brand partners and helps
them grow, fostering a more collaborative and successful ecosystem.
Revenue by channel
Retail 81%
Own brand
10%
Manufacturing
9%
Online retail by territory
UK 60%
US
22%
Europe
16%
ROW
2%
Online category split
Skincare 39%
Haircare
16%
Cosmetics
22%
Fragrance
11%
Body
7%
Other
5%
“ We’re excited to see the
evolution of THG Beauty Media
over the next 12 months as we
continue togrow and enhance
our offering, providing better
ROAS for ourpartners.”
Tom Mills-Webb
Chief Commercial Officer,
THG Beauty
THG PLC Annual Report and Accounts 2025
16
Dermstore x Flex
During 2025 Dermstore partnered with Flex, a payment infrastructure provider, to allow US
customers to use their Health Savings Account (“HSA”) and Flexible Spending Account
(“FSA”) funds at checkout. Thismakes Dermstore one of the first major beauty ecommerce
sites inthe US to offer this payment method for dermatologist-recommended skincare.
The goal of the partnership is to make dermatological products more accessible by
allowing consumers to pay with pre-tax healthcare dollars. For customers, this simplifies
the purchasing process for eligible items, as they can shop and pay directly without
needing to submit claims or manage paperwork after the transaction.
This initiative aligns with Dermstore’s focus on supporting customers in their skin health
journeys by providing more convenient and affordable access to recommended products.
“ Accepting HSA/FSA cards at checkout is a key milestone for us in
our commitment to supporting beauty shoppers to invest in their
own skin health routines, and we are proud to be among the first
beauty-focused ecommerce platforms to do so.”
James Bonner
President of US Retail at Dermstore
Lookfantastic x Uber
In December, we launched a landmark partnership with Uber Eats to introduce
same-day delivery across selected London postcodes. The initiative was
designed to remove ‘December delivery anxiety’ by offering customers certainty,
speed and convenience at the height of the festive season. Using Uber Eats’s
hyper-local fulfilment network, we enabled shoppers to order from a curated edit
of our most sought-after products for delivery in as little as one hour, right up to
and including Christmas Day.
Customer convenience is proven time and time again as a lucrative customer
acquisition tool. With this partnership we were able capture the last-minute
festive shopping window and gain a competitive edge. The collaboration drove
incremental sales by meeting our customers exactly where they are, reinforcing
Lookfantastic’s market leadership in beauty and delivering iconic luxury products
in record time.
2026
priorities
THG Beauty strives to be the
leading online beauty retailer
by leveraging digital innovation
and be the brand partner of
choice to drive sustainable
market share growth
Building on our progress and focus on home
markets, we aim to:
•
Maintain THG Beauty’s position as the
world’s leading online pureplay premium
beauty retailer, with an expanding share
in key online markets.
•
Grow our global beauty community
across all key social channels,
increasingly being trusted as a source of
education, expertise and authority within
the industry.
•
Continue to evolve our brand and
category assortment to ensure we
are offering our customers the most
complete online beauty shopping
experience.
•
Deepen customer loyalty through further
enhancements to our loyalty programme
and personalisation capabilities.
•
Implement tools to create an intuitive
and personalised interface across
websites and mobile applications.
•
Strategically expand our own brands’
global distribution through new and
existing partners.
THG PLC Annual Report and Accounts 2025
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Additional InformationFinancial StatementsGovernanceStrategic Report
Strategic Report
THG Nutrition operates within the expansive and
rapidly growing global nutrition and wellness sector,
encompassing sports nutrition, vitamins, supplements,
hydration and activewear. This market offers significant
growth potential for Myprotein through category and
channel penetration, in addition to product innovation.
Myprotein has expanded its appeal in
high-growth performance and wellness
categories, broadening the brand appeal
and awareness to a more diverse ‘active
lifestyle’ audience.
Revenue growth has been delivered through
a combination of category expansion,
growth in the offline retail footprint and
pricing evolution.
Business overview
•
Increasingly omnichannel model, with a
growing offline presence building on a
market-leading D2C position.
•
Vertically integrated manufacturing
capabilities to power new and improved
product development and speed to market.
•
Presence in major territories with a proven
localisation model, enabling rapid scaling
inemerging territories.
•
Operating across multiple categories
in the growing global wellness space,
with consumers taking greater control,
prioritising products and services which
enhance wellbeing.
•
Unique to the category licensing
model, monetising the brand IP and
building awareness through multi-year,
multi-territory agreements.
We offer a broad range of products and
convenient formats, with this breadth allowing
us to serve multiple consumer needs and
occasions, from everyday wellness and
lifestyle support through to performance
andsports-focused routines.
The primary distribution channel is D2C,
enabling deeper customer engagement
andinsights.
In recent years, we have focused on growth
in retail channels and through licensing
partnerships, enabling us to reach an even
wider addressable market.
Myprotein’s strategy is to build category
leadership in both online and offline
spaces across developed and emerging
markets, capitalising on the long-term
trend of consumers becoming increasingly
health-conscious.
Its strategic priorities are:
1. maintaining Myprotein’s position
as theworld’s largest online sports
nutritionbrand;
2. increasing offline presence to enhance
customer reach through retail, gyms
andexperiences;
3. developing Myprotein’s customer base from
‘specialist gym-goer’ to a broader ‘active
lifestyle’ audience; and
4. evolving the brand to broaden appeal,
earning the right to play in high-growth
performance and wellness categories.
The global wellness market is growing
steadily, driven by a long-term shift towards
greater health awareness among consumers.
This is a competitive space, with both new
and established brands vying for market
share, often focusing on specific regions or
product categories. Within this landscape,
THG Nutrition aims to stand out through
three key strengths: a vertically integrated
business model (meaning it controls much
of its own supply chain and production), a
strong direct-to-consumer digital platform,
and a growing presence across multiple
sales channels. This combination gives it a
meaningful and lasting edge over competitors.
THG
Nutrition
Performance spotlight:
MP Activewear
2025 was undoubtedly MP Activewear’s
year, now representing 12% of online
revenue. This exceptional performance
was driven by a strategic shift to core,
evergreen products, astronger brand
perception aligned with the broader
Myprotein repositioning, and focused
marketing to drive both demand
andhigher-margin sales.
The exceptional growth in this category
demonstrates our ability to evolve
the brand and broaden its appeal into
high-growth wellness categories,
while creating incremental purchase
opportunities.
THG PLC Annual Report and Accounts 2025
18
A year of renewed vigour and
strategic advancement
In 2025, THG Nutrition executed a significant
strategic repositioning, enabling a return
to robust revenue growth and reinforcing
its market leadership in the global nutrition
and wellness sector. Our performance was
underpinned by a renewed focus on brand
strength, disciplined channel strategy, and
product innovation.
Operational review
Guided by a clear and long-standing
missionto ‘empower those who demand
more’, our flagship brand, Myprotein, returned
to revenue growth, powerfully leveraging
the benefits of its brand repositioning. Our
focus on refining the D2C channel as the
ultimate consumer destination, coupled
with a dynamicomnichannel strategy, has
solidifiedour market-leading position.
Category expansion has been an ongoing
priority, and we are seeing healthy demand in
areas outside of our core protein categories
including vitamins, hydration and activewear.
Offline channels have enabled us to stretch
this further with measured investment.
Through a combination of B2B retail and
licensing, we have taken Myprotein into
new markets, engaged new customers and
broadened brand awareness and preference.
This strategic pivot dramatically improved
unaided brand awareness, brand consideration,
and brand preference, setting a new trajectory
for sustainable growth in both D2C and offline
channels.
While we have expanded our retail
footprint and acquired new audiences,
ourD2C channel remained the heart of our
customer relationship and brand experience,
enabling customers to shop frictionlessly
at their convenience, while discovering new
productsto complement their health and
wellness regime.
The positive momentum sparked by the brand
repositioning is underpinning recovery of our
Active Customer database and supporting
new customer acquisition.
Strong engagement and loyalty are clearly
reflected across our customer database, with
39% of our audience choosing to download
and shop via the app. This is a particularly
powerful indicator of customer commitment,
with those who take the step of downloading
the app actively demonstrating a higher
level of investment in the brand, signalling
long-term loyalty and a deeper connection
with our offering.
Revenue
£609.1m
2024: £580.3m
Gross profit margin
43.2%
2024: 44.6%
Adjusted EBITDA margin
4.7%
2024: 5.9%
Revenue from returning customers
4
84%
2024: 85%
Total orders
2
11.0m
2024: 11.3m
Average order value
3
£49
2024: £47
Active Customers
1
5.9m
2024: 6.1m
App participation
5
39%
2024: 31%
Continuing CCY growth rate
+6.4%
2024: -8.7%
Offline doors
>40,000
2024: c.34,000
1. Active Customers is defined as customers who
have purchased at least once within the period.
2. Number of orders is defined as orders fulfilled
within the period.
3. Average order value is defined as the average
order value per customer order on a gross revenue
basis, inclusive of any shipping revenue.
4. Sales of all orders from customers shopping more
than once with THG.
5. Percentage of revenue made through mobile
applications.
THG PLC Annual Report and Accounts 2025
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Additional InformationFinancial StatementsGovernanceStrategic Report
Strategic Report
THG Nutrition continued
Financial performance
THG Nutrition achieved its strongest revenue
growth in over two years, with sales rising
5.0% YoY. This was driven by the omnichannel
expansion strategy, alongside gradual price
increases and better alignment across
customer channels. The sale of Claremont
Ingredients reduced full-year revenue growth
by 50bps.
The business continued to broaden its mix
of territories, sales channels and product
categories, reflecting growing global demand
for protein products. However, the cost of
whey has remained high, driven by strong
global demand meeting new supply capacity.
This has pushed up consumer prices across
the nutrition industry as a whole and added
pressure on gross margins. We continue
to manage this dynamic, balancing margin
protection with customer retention.
Distribution and payroll efficiencies helped to
offset marketing investment in support of new
customer acquisition and retention, with
Adjusted EBITDA of £28.8m (-16.5%) primarily
impacted by the gross margin decline (-140bps).
Strategic highlights
Breaking down the barriers of the fitness
industry and empowering consumers to live
a healthier, more active lifestyle remains
fundamental to the brand. Myprotein now
provides a wide array of products across
various segments of the global nutrition
market, with our 2025 performance reflecting
a disciplined execution of our core strategies,
particularly in increasing our offline presence
to enhance customer reach.
Delivering excellence across
allchannels
Selective product pricing has driven online
growth, complemented by a targeted
approach to social commerce and
marketplace channels. These channels have
been selectively used to launch exclusive
products, creating excitement and reaching
new demographics. A notable success was
Myprotein claiming the title as the highest
growth brand on TikTok shop across the
healthand wellness category in Q1.
Together, marketplaces (e.g. Amazon), B2B retail,
licensing and social commerce (e.g. TikTok)
delivered double-digit revenue growth.
Offline
The growth of our physical retail approach
continued at pace throughout 2025, with
new retail listings secured both in the UK
andinternationally. Myprotein products
are now available in over 40,000 doors
worldwide,principally in the UK, US and
Asia.This expansion has been accelerated
bykey strategic partnerships. Walmart
provided a boost to the growth strategy in
theUS, while 7-Eleven in Asia has provided
similar growth momentum alongside Costco
and Decathlon. This physical presence
enhances brand visibility and provides
newtouchpoints forcustomer acquisition.
The US represents one of our biggest growth
opportunities. With a large, health-conscious
and well-educated consumer base, we are
strategically positioning Myprotein to become
a more significant player in the market over
the medium term. To capture this opportunity,
we are taking a bold approach to rapidly build
brand awareness, anchored by a focused
portfolio of locally manufactured products.
Byleaning into an offline-first strategy,
weareactively closing the visibility gap
and laying the foundations for Myprotein
toestablish a meaningful brand presence.
Revenue by channel
Offline
1
15%
Online
2
85%
Online retail by territory
UK 33%
Europe
41%
Japan
10%
ROW
16%
Online category split
Myprotein 68%
Myvitamins
9%
Clothing
12%
Other
11%
Introducing:
Brands at Myprotein
This year marked the launch of Brand Hub, a curated marketplace designed
to elevate the Myprotein customer experience by bringing together a carefully
selected range of third-party products, all vetted and approved by a brand our
community knows and trusts.
Brand Hub represents a significant evolution of our digital presence,
transforming the Myprotein website and app from a single-brand store into a
comprehensive health and wellness destination. By welcoming innovative and
complementary brands onto the platform, we are broadening the available
offering, giving customers greater choice and convenience across their
favourite categories – all in one place.
1. B2B, manufacturing.
2. D2C, marketplaces.
THG PLC Annual Report and Accounts 2025
20
Retail expansion
We are targeting an installed base globally
of 100,000 doors, and within many doors in
multiple aisles. We are over a third of the way
there through partnerships with major retailers
and category-leading partners, all of which
have been carefully curated to align with our
brand principles at a positive contribution level
with room to scale.
We now sell across six distinct categories
including dairy, frozen foods, healthy snacking
and food to go.
The focus will now turn to replicating this
licensing-out model into wider regions,
particularly in Korea and Japan, cementing
brand presence through offline and
marketplace distribution.
Licensing and strategic
collaborations
The continued expansion of our capital-light
licensing strategy extended Myprotein into
new categories and occasions.
A hero Mars collaboration, which saw the
launch of Snickers-flavoured Impact Whey
Protein, proved to be an instant success. The
wider roster, including global IP from Marvel
and Chupa Chups, continued to extend our
brand reach.
Our licensing-out strategy also matured
significantly. Myprotein x Müller Mousse
ranked as the number one protein dessert in
UK retail, and Myprotein x Kirsty’s lunch pots
ranked as the number one brand for loyalty in
chilled protein ready meals. The Iceland range
continued to develop, demonstrating brand
strength and adaptability.
Licensing agreements with category leaders
led to sales of over 43 million Myprotein units
into retail during 2025. This strategy leverages
its global brand recognition alongside
specialised manufacturing and distribution.
Our commitment to quality:
Myprotein Performance
Advisory Board
The Myprotein Performance Advisory Board has been established to bring together
leading global experts in fitness and nutrition to drive innovation and ensure that
Myprotein products are grounded in scientific evidence. Theboard is comprised of a
distinguished group of academics, scientists and elite athletes who are leaders in the
field of sports nutrition.
The primary objective of the Performance Advisory Board is to combine innovation,
evidence-based research and emerging science with practical, real-world application
tocreate effective nutrition solutions.
The board’s experts collaborate with Myprotein’s team to ensure every supplement
is evidence-based and scientifically validated, from formulation development to
research-backed validation. Theinsights from the board directly influence Myprotein’s
product innovation and communication of thescience behind its products.
2026
priorities
THG Nutrition aims to maintain
its global recognition as a
trusted multi-channel nutrition
and wellness brand, renowned
for quality, taste andas a
source of education.
Building on trading momentum and
acknowledging market developments,
weaim to:
•
Maintain Myprotein’s position as one
of the world’s largest online sports
nutrition brands, further enhancing brand
reach through offline retail, gyms and
experiences.
•
Expand appeal in high-growth
performance and wellness categories
and develop Myprotein’s customer to
a broader ‘active lifestyle’ audience,
alongside our focus on run, lift and hybrid
athletes, utilising efficient and effective
marketing initiatives supported by our
international network of influencers
andaffiliates.
•
Leverage the long-term trend
of increased consumer health
consciousness and demand for
nutritional products across multiple
adjacent categories to increase brand
usage occasions.
•
Broaden and deepen licence and
retail partner relationships through
product and category expansion,
alongside progress against our
100,000doorstarget.
•
Utilise our vertically integrated
in-house manufacturing capabilities
to develop innovative products to an
industry-leading quality standard and
bring them to market at pace.
•
Progress towards our medium-term
Adjusted EBITDA margin target of
c.12.0%.
We are confident that by continuing to
execute our proven multi-channel strategy,
the brand will broaden its appeal, deliver
sustainable growth and further enhance its
position as a global leader in high-growth
performance, nutrition and wellness
categories.
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Strategic Report
Chief Financial Officer’s Review
Overview of FY 2025 result
Key highlights include:
•
THG Beauty delivered improving momentum
throughout the year, culminating in a record
final quarter of revenue. While statutory
revenue decreased to £1,107.9m, this is
largely reflective of the annualisation of the
exit of non-core brands and territories. The
business enters 2026 supported by the
strong underlying growth momentum built
in Q4 2025, particularly in the UK and US
and delivered an Adjusted EBITDA margin of
5.9%, in line with our medium-term guidance.
•
THG Nutrition demonstrated remarkable
resilience, returning to revenue growth of
+5.0%, (Continuing CCY +6.4%) despite
facing exceptionally elevated whey
commodity prices and unprecedented
weakness in the Japanese yen that
has resulted in a decision to change
theeconomic model in this territory.
This performance was driven by the
successful global expansion of our offline
retail and licensing channels, alongside
strong growth in adjacent categories
suchas activewear and creatine.
•
The Group focused on driving sustainable
growth in its core UK and US markets in
2025, while reshaping its approach in Asia
and Europe to prioritise higher margin sales
and improved operating models. The UK
delivered strong double digit growth and
market share gains across both divisions,
while the US remained a key strategic
market despite softer first half consumer
sentiment and currency headwinds.
•
The Group ended the year in a highly
liquid position, with c.£333m of cash and
available facilities, providing substantial
financial flexibility and asolid foundation
forthe future.
The strategic transformation was supported
by a well-executed refinancing, which has
extended our debt facilities to 2029 and
significantly reduced our external borrowings.
Our focus on optimising the Group’s portfolio
delivered a powerful proof point for the
underlying value of our assets, demonstrated
by the disposal ofClaremont Ingredients
for £103m – more than double our initial
investment. Theproceeds have been used
toaccelerate our deleveraging plans.
Throughout the year, we maintained rigorous
financial discipline and cost control, delivering
savings through a combination of automation,
procurement efficiencies, and the removal of
approximately 500 roles. These actions have
created a leaner operating model and helped
mitigate significant external headwinds,
positioning the Group for sustainable,
profitable growth.
“ For THG, 2025 was a transformational year. The successful
demerger of THG Ingenuity at the start of the period
has reshaped the Group, creating a more focused and
agile consumer brands business poised for future cash
generation. Our refinancing materially strengthened the
balance sheet by reducing external borrowings. With £333m
of liquidity and strong momentum across THG Beauty and
THG Nutrition, we enter 2026 well positioned to deliver
sustainable profitable growth.”
Total Group overview
1
2025
£m THG Beauty THG Nutrition Central Total 2025
Adjusted revenue 1,107.9 609.1 — 1,717.0
Adjusted gross profit 435.6 263.3 — 698.9
Margin 39.3% 43.2% — 40.7%
Adjusted EBITDA 65.8 28.8 (18.0) 76.6
Margin 5.9% 4.7% — 4.5%
2024 (Restated
2
)
£m THG Beauty THG Nutrition Central Total 2024
Revenue 1,171.1 580.3 — 1,751.4
Adjusted gross profit 468.9 258.6 — 727.5
Margin 40.0% 44.6% — 41.5%
Adjusted EBITDA 71.2 34.4 (22.2) 83.4
Margin 6.1% 5.9% — 4.8%
1. The numbers in this report are subject to roundings throughout. This report includes a number of non-GAAP measures and alternative performance measures.
Adjusted results are consistent with how business performance is measured internally and presented to aid comparability of performance. See more information
within the reconciliations to statutory measures within this report.
2. 2024 has been restated to reflect the demerger of THG Ingenuity and the inclusion of the result from 'discontinued categories' which were previously presented
separately. See more information and a reconciliation within the financial statements. No other adjustments have been made.
THG PLC Annual Report and Accounts 2025
22
Disciplined
strategy
execution
Additional InformationFinancial StatementsGovernanceStrategic Report
23
THG PLC Annual Report and Accounts 2025
Strategic Report
Chief Financial Officer’s Review continued
THG Beauty
THG Beauty demonstrated improving momentum and strategic progress throughout 2025, culminating in a record revenue performance in the
second half of the year. The strategic initiatives undertaken have successfully repositioned the business for sustainable, profitable growth, with
thedivision delivering a resilient financial performance in a year of transition.
Adjusted revenue for the year was £1,107.9m (2024: £1,171.1m), a -5.4% decrease. However, this was significantly impacted by the planned strategic
changes to the portfolio. After accounting for foreign exchange movements, revenue on a continuing CCY basis grew by +0.2%, reflecting the
underlying health and growth of the core business. The walk from our statutory sales performance to the continuing CCY position reflects several
deliberate, value-accretive actions:
•
Discontinued categories: The largest driver of the statutory revenue decline was the annualisation of exited non-core and loss-making
operations. This included the disposal of the luxury portfolio and the discontinuation of the Australian beauty retail business, European
subscription box services, and non-core brands such as Grow Gorgeous. These actions accounted for a drag of 460bps on full-year statutory
revenue growth but were critical in improving the margin profile of the ongoing business.
•
Strategic territory prioritisation: A conscious decision was made to reduce lower-margin sales activity and pull back on promotional intensity
in parts of Europe and Asia. This focus on higher-quality revenue streams created a headwind of 70bps but ensures a more profitable and
sustainable footprint in these regions. The drag from this activity sequentially reduced throughout the year and has now largely annualised.
•
Own brand repositioning: Ongoing life cycle investment to enhance formulations, range and product appeal across our own-brand portfolio
caused a short-term drag on revenue, contributing a further 190bps. A key part of this was the migration of the Perricone MD brand from a
first-party (“1P”) to a third-party (“3P”) distribution model on Amazon, which, while impacting short-term sales, positions the brand for greater
long-term strength.
The year was a tale of two halves. A challenging first quarter, set against a tough comparative period, gave way to accelerating momentum,
culminating in the strongest quarter of the year in Q4 (+6.3% Continuing CCY). This was driven by a particularly strong Cyber trading period and
exceptional performance in core markets. The UK was a standout, with Lookfantastic UK delivering +16.2% growth during the key Cyber period,
driving market share gains. Performance in the US market also saw progressive improvement through the year, with the introduction of new
payment methods on Dermstore driving sales momentum and excellent new customer acquisition into year end.
Adjusted gross profit margin for the year stood at 39.3% (2024: 40.0%). This slight moderation reflects the mix impact from the repositioning
of the higher-margin own-brand portfolio during the year. The performance remains firmly within our medium-term guided range of 38%–40%,
demonstrating disciplined management of our pricing and promotional strategies.
Adjusted EBITDA was £65.8m, delivering a 5.9% margin (2024: 6.1%). This performance is in line with our medium-term guidance of c.6% and
reflects the portfolio simplification completed in 2025, which removed structurally loss-making territories. These benefits have now annualised,
partly offsetting revenue headwinds. The profitability was supported by marked operational efficiencies, most notably in distribution costs, which
improved by 70bps as a percentage of revenue to 9.6%. This was driven by a favourable territory mix from stronger UK performance, where our
automated facilities are concentrated. Furthermore, disciplined cost management and automation-led payroll savings helped to offset inflationary
pressures and planned strategic marketing investments aimed at driving brand awareness and high-quality customer acquisition.
We enter 2026 with strong trading momentum and high confidence, having successfully executed our strategic priorities for THG Beauty in 2025.
THG Nutrition
THG Nutrition returned to sales growth, despite significant external headwinds, reporting revenue of £609.1m (2024: £580.3m), representing
statutory sales growth of +5.0%. This performance reflects the successful pivot towards an omnichannel strategy and the growing momentum
from the global Myprotein rebrand.
After accounting for the disposal of Claremont Ingredients, which created a drag of 40bps, and significant foreign exchange headwinds, primarily
from the sustained weakness of the Japanese yen, which impacted growth by a further 100bps, the Continuing CCY revenue growth was +6.4%.
The performance was materially stronger excluding Asia, where the combination of elevated whey prices and the adverse currency environment
rendered the D2C model uneconomic, prompting a strategic transition towards a partnership-led distribution model in the region for which the
Group will transition in H1 2026. Excluding Asia, H2 revenue growth was +13.3%, driven by strong progress in offline channels, including B2B retail
and licensing, alongside a resilient performance in the UK and notable growth in Central and Eastern Europe. Growth was also strong in categories
such as creatine, activewear and hydration, which helped to reduce dependency on whey-based products.
THG PLC Annual Report and Accounts 2025
24
Adjusted gross profit margin was 43.2% (2024: 44.6%), a decrease of 140bps, which was a resilient performance in the face of two significant,
persistent external headwinds. The higher-for-longer whey pricing environment continued throughout the year, with input costs remaining
materially above historical levels, creating substantial margin pressure. This was compounded by the continued weakness of the Japanese yen,
which made the cost of business in one of Myprotein’s largest historical markets increasingly challenging. These pressures were partially mitigated
by a disciplined approach to pricing, a mix shift into higher-margin categories including activewear, which represented 15% of sales in Q4, and the
growth of high-margin licensing revenue.
Consequently, the Adjusted EBITDA margin for the year was 4.7% (2024: 5.9%), a decrease of 120bps. This reduction was a direct result of the
gross margin pressures from the unprecedented whey costs and adverse currency movements. The Group’s significant cost-saving programme,
which delivered payroll efficiencies through automation and process improvements, helped to partially offset these headwinds. The business enters
2026 with strong momentum, having delivered four consecutive quarters of revenue growth, and is well positioned to capitalise on its expanded
omnichannel presence and diversified product portfolio.
VAT update
The Group notes the First Tier Tribunal decision in Global By Nature Limited, selling protein products under the ‘Sunwarrior’ brand. The Tribunal ruled
that protein powder products sold by Sunwarrior should be subject to 0% UK VAT, and accordingly, Sunwarrior was eligible for a retrospective VAT
repayment and is able to apply 0% VAT on the associated products from the date of the ruling (January 2025).
Since the VAT rules in relation to sports drinks were implemented in 2012, THG has paid UK VAT against its powdered products in line with market
practice and HMRC guidance relating to the VAT treatment of protein powders. THG has submitted Error Correction Notices to HMRC, who have
stated they will provide a substantive update by the end of Spring 2026.
Central costs
Central costs for the year reduced to £18.0m (2024: £22.2m), representing approximately 1.0% of Group sales. These costs relate primarily to
the PLC Board remuneration, insurance, professional services fees, Group finance, corporate development and governance costs that are not
recharged to the businesses as they principally relate to the operations of the PLC holding company. This sustained improvement is the direct
result of a Group-wide cost-saving programme, a simplified group post demerger and the Group automating through the use of AI.
Geographical review of revenue
The following table provides an analysis of revenue by region (by customer location):
2025
£m
2024
£m Movement
UK 908.9 820.5 +10.8%
US 297.0 362.9 -18.2%
Europe 351.0 362.5 -3.2%
Rest of the world 160.1 205.5 -22.1%
Adjusted revenue
1
1,71 7.0 1,751.4
1. Revenue less adjusted items.
The Group’s strategic focus in 2025 was centred on driving sustainable growth in our core markets of the UK and US, alongside a deliberate
repositioning in Asia and Europe. This involved prioritising higher-margin sales and evolving our operating models, a process that has now largely
cycled through, setting a strong foundation for future performance but which also shifted the regional mix of sales.
The UK continues to be the largest and most concentrated market for the Group, accounting for 53% of revenue (2024: 47%) and growing +10.8%
in the year. The year saw a standout performance in the UK, with market share gains across both divisions. THG Beauty delivered an especially
strong performance, with Lookfantastic UK achieving impressive growth of +16.2% in the final quarter, driven by strong new customer acquisition
anda record-breaking festive trading period. THG Nutrition also delivered a solid performance, maintaining its position as the UK’s number one
sports nutrition brand.
The US remains a key strategic market with significant growth potential. The first half of the year presented challenges due to cautious consumer
sentiment and US dollar headwinds, the weakness in the dollar and other factors led to statutory sales falling -18.2%. A strong improvement was
seen as the year progressed, THG Nutrition’s expansion into US retail was a highlight, with new listings in major retailers such as Walmart and GNC
significantly expanding our offline presence.
In Europe and the Rest of the World, revenue declined as a direct result of strategic actions. Within THG Beauty, we consciously reduced
promotional activity and exited certain low-margin sales activities across Europe and Asia. For THG Nutrition, performance in Asia was significantly
impacted by the sustained and adverse weakness of the Japanese yen, combined with elevated whey protein costs, which rendered the
direct-to-consumer model uneconomic and was the largest factor behind the 20.3% sales decline in the region. In response, we are finalising
atransition to a more profitable partnership-led distribution and licensing model in the region.
THG PLC Annual Report and Accounts 2025
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Additional InformationFinancial StatementsGovernanceStrategic Report
Strategic Report
Chief Financial Officer’s Review continued
Group financial review
Statutory results
Year ended
31 December
2025
£m
Year ended
31 December
2024
£m
Continuing operations
Revenue 1,717.9 1,751.4
Cost of sales (1,029.9) (1,057.8)
Gross profit 688.0 693.6
Distribution costs (215.4) (231.0)
Administrative costs (525.0) (610.5)
Profit on disposal of subsidiary 60.5 —
Operating profit/(loss) 8.1 (147.9)
Finance income 2.5 9.0
Finance costs (80.1) (63.6)
Loss before tax (69.4) (202.4)
Income tax credit 5.7 21.9
Loss for the financial year from continuing operations (63.7) (180.6)
Discontinued operations
Profit/(loss) for the financial year from discontinued operations, net of tax 117. 8 (145.6)
Profit/(loss) for the financial year 54.1 (326.1)
Adjusted profit measures with reconciliation to statutory result
Management have presented alternative performance measures to provide stakeholders with additional helpful information on the performance
of the business. These alternative performance measures are consistent with how the business performance is monitored and reported through
internal Management reporting to the Board. To ensure that stakeholders can reconcile this to the statutory information presented, the below table
has been included:
2025
Management
adjusted view
£m
Adjusted
items
£m
Amortisation
and
depreciation
£m
Share-based
payments
£m
Statutory
£m
Revenue 1,71 7.0 0.9 — — 1,717.9
Cost of sales (1,018.1) (11.0) (0.8) — (1,029.9)
Gross profit 698.9 (10.1) (0.8) — 688.0
Distribution costs (211.4) (0.7) (3.3) — (215.4)
Administrative costs (410.9) (19.4) (86.8) (7.9) (525.0)
Profit on disposal of subsidiary 60.5 — — — 60.5
Operating profit 137.1 (30.2) (90.9) (7.9) 8.1
2024
Management
adjusted view
£m
Adjusted
items
£m
Amortisation
and
depreciation
£m
Share-based
payments
£m
Statutory
£m
Revenue 1,751.4 — — — 1,751.4
Cost of sales (1,023.9) (33.6) (0.4) — (1,057.8)
Gross profit 727.5 (33.6) (0.4) — 693.6
Distribution costs (229.5) (1.3) (0.2) — (231.0)
Administrative costs (414.6) (89.6) (89.6) (16.6) (610.5)
Operating profit/(loss) 83.4 (124.5) (90.2) (16.6) (147.9)
THG PLC Annual Report and Accounts 2025
26
Revenue
Group statutory continuing revenue decreased by -1.9% to £1,717.9m (2024: £1,751.4m), a result directly impacted by strategic decisions to exit
non-profitable businesses and territories, which reduced full-year growth by 320bps. Macroeconomic challenges in Asia, notably the weak
Japanese yen and elevated whey prices, also necessitated a shift to a partnership-led model for THG Nutrition in the region.
This was significantly offset by a record second-half performance (+6.8% CCY), which while on a statutory basis revenue declined, on a constant
currency basis, when the impact of the discontinued categories are removed increased by +2.3%. This recovery was fuelled by the success of
THG Nutrition's offline and licensing expansion and a marked acceleration in THG Beauty, which delivered a very strong final quarter with robust
momentum in the UK and US markets.
Gross profit
Adjusted gross profit was £698.9m (2024: £727.5m) equating to an adjusted margin of 40.7% (2024: 41.5%), a reduction of 80bps compared to 2024.
The YoY margin reduction was driven by the significant external headwinds faced by THG Nutrition. The business contended with a
higher-for-longer whey price environment, with input costs remaining at exceptionally elevated levels, creating near-term margin pressure. This
was compounded by the sustained weakness of the Japanese yen, which rendered the D2C model in Asia uneconomic. The division has actively
worked to mitigate these impacts through targeted price increases, product reformulation, and a successful mix-shift towards higher-margin
categories such as hydration, creatine and clothing.
THG Beauty delivered margins in line with its medium-term guidance range of 38-40%, despite the repositioning of its own-brand portfolio earlier
in the year.
Gross profit on a statutory basis totalled £688.0m, delivering a margin of 40.0% (2024: 39.6%). In addition to the factors above, the statutory
position in 2025 was impacted by adjusting items relating to the Group’s continued strategic review and portfolio optimisation.
Distribution costs
Adjusted distribution costs of £211.4m (2024: £229.5m) equate to 12.3% of revenue (2024: 13.1%). This significant improvement of 80bps is a result
of an improved regional mix, with stronger growth in the UK where sales concentration and warehouse automation is highest. The continued focus
on improving average order values across both divisions also drove further efficiency into the Group’s distribution network.
Distribution costs on a statutory basis were £215.4m, being 12.5% of revenue (2024: 13.2%). The statutory result for 2025 also reflects changes to
the Group’s lease portfolio and associated depreciation following the demerger of THG Ingenuity, alongside the impact of adjusting items.
Administration costs
Adjusted administrative costs as a percentage of revenue totalled 23.9% (2024: 23.7%). Throughout 2025, the Group executed a significant cost-
saving programme which has right-sized the cost base of the business, with payroll costs improving by 100bps year-on-year, driven by the removal
of c.500 roles through a combination of restructures, attrition and the accelerated adoption of AI to automate and improve business processes.
These substantial savings were delivered despite headwinds from national insurance and national minimum wage increases, which added c.£8m
of cost. Furthermore, a conscious investment was made in marketing during the year to support the successful return to growth in the second half,
driving new customer acquisition and brand awareness. Adjusted administrative costs reduced by £3.7m to £410.9m (2024: £414.6m), reflecting
the successful cost-saving initiatives more than offsetting the planned investment in marketing and inflationary pressures.
Administrative costs on a statutory basis totalled £525.0m (2024: £610.5m), decreasing year on year due to a significant reduction in adjusteditems.
Adjusted EBITDA and Adjusted EBITDA margin
Reconciliation from operating profit/(loss) to Adjusted EBITDA
2025
£m
2024
£m
Operating profit/(loss) 8.1 (147.9)
Adjustments for:
Amortisation 16.5 19.9
Amortisation of acquired intangibles 41.9 45.5
Depreciation on fixed assets 12.0 13.1
Depreciation on right-of-use assets 20.4 11.7
Adjusted items – cash 14.3 24.6
Adjusted items – non-cash 6.4 42.4
Adjusted items – non-cash impairment 9.5 57.5
Share-based payments 7.9 16.6
Profit on disposal of subsidiary (60.5) —
Adjusted EBITDA 76.6 83.3
Adjusted EBITDA % 4.5% 4.8%
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Adjusted items
In order to understand the underlying performance of the Group, certain costs included within cost of sales, distribution and administrative
expenses have been classified as adjusted items. Adjusted items decreased significantly year on year, totalling £30.2m in 2025, representing a
reduction of almost £95m compared to 2024 (£124.5m).
Adjusting items in the current year primarily comprise one-off costs associated with strategic reviews as the Group continues to pivot towards a
simpler economic model and adapt to the prevailing macroeconomic environment, alongside restructuring costs arising from headcount reductions
as processes are simplified and the Group further embraces AI.
The significant reduction relative to the prior year is principally driven by a reduction in the level of impairment charges, with £57.5m recognised in
2024 (£9.0m in 2025). For full details of each category of adjusted items, see note 4 to the financial statements.
Profit on disposal of subsidiary
The strategic disposal of Claremont Ingredients completed in August 2025 for cash proceeds of c.£103m, generating a profit on disposal of
£60.5m. This accounting gain, which represents the excess of proceeds over the carrying value of the divested net assets, marks an excellent
return on the initial investment of c.£52m in late 2020.
Depreciation and amortisation
Statutory depreciation and amortisation costs were £32.5m and £58.4m respectively (2024: £24.8m and £65.4m). Included within amortisation is
£41.9m (2024: £45.5m) of amortisation on acquired intangibles (see below) relating to historic acquisitions.
Amortisation has reduced following disposal of intangible assets as part of the sale of Claremont Ingredients. The increase in depreciation is due to
the new leases entered into following demerger which has led to an increase in depreciation on right-of-use assets.
Amortisation on acquired intangibles £41.9m (2024: £45.5m)
When an acquisition is made, the accounting standards (IFRS 3: Business Combinations) require that an exercise is undertaken to value any
brands, trade names or other intellectual property (such as customer lists). Following recognition of these assets, they are amortised over a period
of 2-20 years.
Given the number of significant acquisitions made across 2017 to 2022, primarily within THG Beauty, we consider this amount should be viewed
separately to other amortisation to ensure comparability to those who undertook fewer or no acquisitions. This is a non-cash cost.
There were no additions here and the reduction in acquired amortisation year on year was largely driven by a combination of the prior year
impairment reducing the carrying value of assets alongside some of the assets now being fully written down.
Adjusted EBITDA and operating profit/(loss)
Adjusted EBITDA for the year totalled £76.6m (2024: £83.3m). This resilient performance was delivered against significant, well-publicised external
headwinds. The modest reduction year on year was principally driven by challenges within THG Nutrition, which faced sustained, record-high
whey commodity prices and the persistent weakness of the Japanese yen. These factors impacted margins and prompted a strategic pivot away
from the D2C model in Asia. Profitability was also temporarily constrained by a planned life cycle investment programme across THG Beauty’s
own-brand portfolio, a strategic decision taken to enhance and reposition key brands for future growth.
The Group’s statutory operating profit/(loss) for the year showed a substantial improvement, swinging to a profit of £8.1m from a loss of £147.9m
in 2024. This improvement of over £150m is directly attributable to a significant reduction in adjusting items, which fell to £30.2m from £124.5m
in the prior year, combined with the profit generated on disposal of Claremont Ingredients totalling £60.5m (2024: £nil). The 2024 result was
materially impacted by significant, non-recurring costs relating to the Group’s strategic overhaul, which included losses on the disposal