THG shares jump as MyProtein owner returns to revenue growth
THG – the London-listed firm behind fitness supplement brand Myprotein – has reported a jump in revenue growth ahead of its AGM today.
The group, founded by businessman Mathew Moulding, recorded positive revenue growth across its Beauty and Nutrition divisions on a constant currency basis and reiterated its full-year targets.
Shares rose by over 10 per cent in early trading following the news.
At the beginning of January, THG demerged Ingenuity, its tech and distribution business into a new private entity. Morning Wire is part of the Ingenuity private business.
The statement released on Wednesday, ahead of the group’s annual general meeting, said the Nutrition arm’s revenue would grow five to seven per cent in the second quarter – an increase of 0.1 per cent from the first three months of the year.
THG Beauty is expected to report a decline of two to three per cent in the second quarter, an improvement of 9.8 per cent in the first.
The group said it expected “direct exposure” to tariffs to be less than £1m but continued to monitor changes to US trade policy.
THG on track for targets
Analysts at Peel Hunt reiterated a Buy rating for the stock and said the firm was “on track” to meet full-year expectations.
“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.
“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,” analysts said.
THG said during an update in April that full-year 2025 guidance was unchanged as it recorded a 1.1 per cent year-on-year growth to pre-demerger revenue at £1.7bn.
Commenting at the time, 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.”
He 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.”