THG’s profits fell by almost a third in the first half of the year as it battled a slowdown in its beauty business and the skyrocketing price of whey.
Profits fell to £24m in the six months to 30 June, down from £37.1m in same period a year ago, the company said.
Group revenue fell 7.6% to £783.4m as growth in its nutrition business partially offset the decline in beauty.
But the company said trading momentum was building with strategic model changes implemented across both beauty and nutrition now bearing fruit.
This included the demerger of the Ingenuity platform in January and the sale of Claremont Ingredients to Nactarome Group for £103m, agreed last month. THG said these have put it on an accelerated path towards a net cash position.
Matthew Moulding, CEO, said the first half had been a “transformative period which sets us up well for our most profitable and cash generative period in H2.
“Our momentum is positive and Q3 will be our strongest trading period of the year so far, underpinning our confidence in the outlook.”
THG’s share price was up almost 5% in early trading following the results.
The company’s beauty division saw revenue fall 5.9% but has returned to growth in the third quarter, with second-half revenue growth of 1% to 3% expected.
In nutrition revenue rose 3.1% supported by price hikes and strong Myprotein sales.
Anubhav Malhotra, an analyst at Panmure Liberum, said that while “current trading is decent boosted by some decent price increases…there is a lot to prove here, and it really is all down to cash generation.”
“While FY26 could bring upside if Myprotein’s offline expansion continues to gain traction and whey prices decline, the timing of these catalysts remains uncertain.”
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