THG revenue slips following Ingenuity demerger

Total revenue fell to £1.94bn in the financial year to December 31, down from £2.04bn the year prior.

Post-demeger revenue totalled £1.68bn, falling 2.5% year on year and 0.4% on a constant currency basis. 

THG Beauty sales grew 3.3% on a year-on-year basis to reach £1.1bn, but this was offset by THG Nutrition, which fell 11.9% to nearly £580m.

In the first quarter of 2025, the nutrition arm returned to growth on a constant currency basis while beauty declined 9.8%. 

The overall group continuing revenue for this period reached £371m, declining 6.1%.

THG said it maintains its revenue growth expectations of “mid-single digit” for the year, with group adjusted EBITDA margins aimed to be at around 9%.

It said it is monitoring the changes to US trade policy and its exposure to tariffs is expected to be less than £1m “pre-mitigating actions”.

THG chief executive Matthew Moulding said: “2024 was a big year of change and evolution for THG, the highlight of which was the demerger of the group’s technology division, THG Ingenuity, at the end of the year. Following on from the demerger, we immediately undertook the early refinancing of the group’s debt, reducing gearing and putting in place long-term facilities to the end of 2029, alongside entering the FTSE 250.

“We are now fully focused on THG Beauty and THG Nutrition, and I’m incredibly proud of the progress each business has made. Following extensive efficiency drives, incorporating both automation and AI, THG has become a much leaner, fitter group that has shown strong resilience in the face of record whey commodity pricing that placed temporary pressure on Nutrition margins. 

“A strong performance across our Beauty business, delivering ahead of its medium-term adjusted EBITDA margin target, helped the group to deliver a pre-demerger adjusted EBITDA margin ahead of 2023 despite the transitory headwinds in Nutrition.

“Both our businesses have undertaken extensive model changes over the past 24 months. Beauty has focused on more profitable markets and building loyalty schemes, while Myprotein has pressed ahead in undertaking a successful rebrand, underpinning rapid growth across global offline retail and licensing.

“In the first quarter of this year, THG Beauty was up against a comparative period including an early Easter, which is a key trading event, and an extra day’s trading. However, in its home UK and US markets, Beauty retail is trading resiliently, with a strong selection of new brand launches planned throughout the year. It’s also been especially pleasing to see Nutrition momentum improving throughout the quarter, with February and March back in growth.”