Online beauty retailer THG reported “much improved” performance across its beauty and nutrition businesses, as the business returned to constant currency revenue growth in Q2.
THG’s beauty segment will deliver a revenue decline of 2%-3%, far better than Q1’s 9.8% slump.
Beauty retail – which makes up the vast majority of its beauty business – “traded resiliently” with growth in its largest territory, the UK, at its highest rate since Q1 2024, and market share gains.
THG’s nutrition segment has jumped from 0.1% growth in Q1 to an expected 5%-7% growth in Q2 alone, with the business now growing at its fastest rate since Q1 2022.
The Myprotein retailer said it now offers the product in over 34,000 stores worldwide, principally in the UK, US, and Japan, and had managed to secure over 900 store listings in the Netherlands alone in H1, alongside listing in 7-Eleven, Costco and Decathlon in various Asian markets.
The move to push Myprotein into both the offline and licensing space will see around 45 million units sold through a total of 40,000 locations by the end of the year, THG said, with retail sales value expected to be around £170m for the financial year.
Offline expansion will be particularly strong in the US, with an anticipated five-fold increase in distribution expected during the year to around 8,400 locations.
THG nodded to potential profit gains as milk and whey prices begin to soften, and the Q3 annualisation of its withdrawal from lower-margin Asian and European countries, which will “neutralise” the year-on-year revenue drag from those territories.
The firm also confirmed that its direct exposure to tariffs is expected to be less than £1m, even before it takes any mitigating actions.
A statement ahead of today’s AGM said: “We continue to monitor the changes to US trade policy and reciprocal actions for an adverse impact on raw material supply chains and US consumer sentiment.”
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