THG, the publicly traded company behind the fitness supplement titan Myprotein, has seen a surge in revenue growth just ahead of its Annual General Meeting today.
The enterprise, established by entrepreneur Mathew Moulding, has experienced positive revenue trajectories within its Beauty and Nutrition branches when accounting for constant currencies, and has confirmed its objectives for the entire year, as reported by .
With shares climbing over 10% in initial trading after the revelation, THG has seen investor sentiment soar.
Announced at the start of January, THG went through a demerger which saw Ingenuity, its technology and logistics division, become a standalone private entity, now associated with City AM.
The update issued on Wednesday, prior to the company's AGM, indicates that the Nutrition department is projected to expand by five to seven percent in Q2 – marking a slight advancement of 0.1 percent from Q1 revenues.
Conversely, THG Beauty is forecasted to undergo a two to three percent decrease in revenues in Q2, albeit showing an improvement from a 9.8 percent decline witnessed in Q1.
THG has stated anticipated "direct exposure" to duties would likely remain below £1 million while continuing to stay vigilant regarding alterations in US trade policy.
THG on track for targets
On the path to achieving its projected targets, analysts from Peel Hunt have reasserted a 'Buy' rating on THG stocks, endorsing the company's alignment with yearly projections.
They offered insight declaring, "After a broadly flat first quarter, Nutrition sales are growing at the fastest rate since 2022, with strong growth in direct-to-customer and offline sales as well."
Analysts have noted: "Momentum has built over the quarter, with June's exit rate tracking ahead of the quarterly performance. Online customers are back in growth, with ASP also growing after the rebrand disruption that had held back performance over the second half of 2024,".
In an update provided in April, THG stated that its full-year 2025 guidance remained unchanged as it recorded a 1.1 per cent year-on-year growth to pre-demerger revenue at £1.7bn.
At the time, Moulding commented: "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."
He further added: "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."
