THG shares soar as it swings back to profit in ‘coming of age moment’
THG shares soared on Thursday after the e-commerce firm swung back to profit, with pre-tax earnings exceeding market expectations.
The London-listed beauty and nutrition retailer posted profit after tax of £54.1m for 2025, turning around a loss of £326m the previous year, helped along by pocketing £103m from the sale of ingredients business Claremont in August.
Tiktok Shop was a key driver of the firm’s growth, with sales on the platform more than doubling compared to 2024 after online beauty store Lookfantastic became the top-selling multi-brand beauty retailer on the social media app.
Meanwhile THG Nutrition’s sales growth was led by growing awareness of bodybuilding supplement Myprotein, with products now available in over 40,000 stores globally, and new licencing partnerships with global confectionary brand Mars.
The Manchester-based business is guiding mid-to-high single digit revenue growth in its nutrition division with “strong underlying growth” in sales of beauty products.
The firm could be in line for a windfall of as much as £78m if it wins a claim with HMRC over the VAT treatment of its protein powder.
Chief executive Matt Moulding said: “Our 21st year in business has been a ‘coming of age’ moment: A year of accelerating momentum, marked by a return to continuing CCY revenue growth, decisive strategic actions, and a clear validation of our long-term vision.
“We have simplified our structure, sharpened our focus on our key territories and brands, and strengthened our financial foundations.”
THG shares were up 8.3 per cent to 34.1p in the opening minutes of trade on Thursday.
THG plc was the owner of Morning Wire until its Ingenuity division demerged from the wider group at the start of 2025.