UK's THG posts prelim FY25 profit on asset disposal and debt reduction

THG

26/03/2026 07:16

Overview

UK e-commerce group's preliminary FY 2025 revenue grew 2.3% in CCY, statutory revenue declined

Adjusted EBITDA for FY 2025 beat company guidance and consensus

Company returned to profit after tax, supported by asset disposals and debt reduction

Outlook

THG expects FY 2026 revenue and adjusted EBITDA in line with company consensus

Company anticipates net debt to fall to £110m-£130m before asset disposals

Free cash flow generation for FY 2026 seen at £25m-£50m

Result Drivers

BEAUTY PORTFOLIO SIMPLIFICATION - THG Beauty's statutory revenue decline was mainly due to the planned exit from non-core and loss-making operations, territory prioritisation, and own-brand repositioning, which created a drag on reported revenue but improved the quality and margin profile of the ongoing business

NUTRITION OMNICHANNEL EXPANSION - THG Nutrition's revenue growth was driven by the shift to an omnichannel strategy, including expansion into offline retail and licensing, and diversification into categories like activewear and creatine, though margins were pressured by high commodity prices and currency headwinds

COST CONTROL AND EFFICIENCY - Group Adjusted EBITDA was lower YoY due to increased marketing and brand investment, but operational efficiencies, automation, procurement savings, and headcount reduction helped mitigate external pressures

Company press release: ID:nRSZ1778Ya

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Adjusted EBITDA
Beat
GBP 76.60 mln
GBP 74.41 mln (4 Analysts)
FY Net Debt
-GBP 233 mln
FY Operating Income
GBP 8.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for THG PLC is GBp60.00, about 90.7% above its March 25 closing price of GBp31.46

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)