Digital commerce group THG has bounced back to growth in the second quarter, propelled by stronger sales at its supplement brand Myprotein, triggering an eight per cent surge in its share price.
The company informed markets this morning that revenue climbed 0.9 per cent quarter-on-quarter, though overall first-half revenue remained 2.9 per cent below 2024 levels at £783.4m, as reported by .
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) tumbled 35 per cent to £24m.
Gross profit declined 10.8 per cent to £322m, weighed down by a 14.8 per cent slide in beauty sales.
Meanwhile, revenue at THG's nutrition division advanced 3.1 per cent to £303.6m, with second-quarter expansion marking the strongest performance since 2022.
At the start of January, THG spun off Ingenuity, its technology and distribution arm, into a separate private entity. City AM forms part of the Ingenuity private business.
"I'm really pleased at how THG has gained momentum throughout the first half and into [the third quarter]," chief executive Matt Moulding said.
"A slower start to the year in beauty, alongside record whey prices in Nutrition, initially held back performance, but we saw clear improvement in Q2, in particular supported by Myprotein offline retail and licensing sales," Moulding added.
Full-year guidance remained unchanged, with third-quarter trading representing the "strongest trading performance of 2025 so far."
A 'good start' for THG
Analysts at Peel Hunt have stated that THG has had a "good start" to the second half of the year, and its unchanged guidance is "welcome".
"The [first half] results were well flagged and... do not contain much new information," they commented.
"There is a lot to prove here, and it really is all down to cash generation... While [2026] could bring upside if Myprotein's offline expansion continues to gain traction and whey prices decline, the timing of these catalysts remains uncertain," they further added.
Peel Hunt has given THG a 'hold' rating with a target price of 26p.
The firm's share price has seen an increase of over seven per cent in the past week, although it has dropped by approximately a third over the last year.
