THG PLC beats Q4 2025 guidance as THG Beauty and THG Nutrition show strategic momentum

THG PLC (LSE: THG) reported a strong finish to fiscal year 2025 with fourth-quarter revenue rising 7.0 percent year-over-year on a constant currency basis, comfortably exceeding the top end of its guidance range. THG Beauty and THG Nutrition segments both outperformed internal expectations, driving H2 revenue 14 percent above the upper end of the company’s own forecasts.

This marked THG’s best quarterly revenue performance of the year and reversed the declining trend observed in H1, culminating in full-year growth of 2.3 percent after adjustments for currency and discontinued operations. The group now enters 2026 with improved balance sheet liquidity, stronger category leadership, and validated channel diversification strategies across both core verticals.

How did THG Beauty and Nutrition deliver above-guidance growth in Q4 2025?

THG Beauty delivered Q4 revenue of £370.2 million, reflecting a 6.4 percent increase on a constant currency basis and its strongest quarterly performance since Q4 2021. Growth was anchored by Lookfantastic, which surged 16.2 percent year-over-year in the UK and Ireland. CEO Matthew Moulding attributed the outperformance to focused execution in core categories such as skincare and cosmetics, renewed momentum in own brands like Perricone MD and ESPA, and successful last-mile innovations like the Uber Eats partnership for same-day delivery in London.

THG Nutrition grew Q4 revenue by 8.5 percent year-over-year in constant currency terms, driven by strategic pricing, expanded gross margin accretive categories, and international retail penetration. Excluding Asia, where performance lagged due to geopolitical volatility and macro headwinds, Nutrition posted a 12.2 percent revenue increase, its fourth consecutive quarter of growth.

The Myprotein brand maintained its leadership in the UK and Europe, holding an estimated 25 percent share of the UK online sports nutrition market. Retail expansion played a key role: in addition to 25 new Myprotein SKUs launched with Iceland in the UK, further range expansion is planned in H1 2026 for U.S. retailers such as GNC and Kroger. Meanwhile, new licensing partnerships with Mars joined an expanding roster that already includes Müller, Chupa Chups, and Vimto.

What strategic levers helped THG outperform despite portfolio streamlining and FX pressure?

Despite meaningful headwinds from asset disposals and discontinued operations—particularly the sale of Claremont Ingredients and the luxury beauty portfolio—THG still posted group Q4 revenue growth of 7 percent. Management estimates that discontinued businesses reduced top-line growth by nearly 290 basis points in Q4 and 330 basis points for the full year.

Crucially, those headwinds are now largely annualised. The focus for 2026 appears to be on margin protection, channel discipline, and sustained demand capture in high-growth segments. Within THG Nutrition, the increasing revenue mix from activewear (rising to 12 percent of online sales versus 8 percent in FY 2024) is seen as both margin-accretive and customer-base diversifying. Over 500,000 women’s leggings were sold during the year, suggesting fitness lifestyle integration beyond supplements is gaining traction.

Currency effects also moderated in Q4. While Japanese Yen and U.S. Dollar weakness weighed earlier in the year, this was mostly offset by Euro strength by year-end, helping reduce FX drag on reported revenue.

Is THG’s balance sheet finally positioned to support sustained growth?

THG closed the year with over £330 million in cash and available credit facilities, giving it flexibility to reinvest in core brands, pursue selective partnerships, and weather any near-term volatility in commodity pricing or consumer demand. While EBITDA guidance remains unchanged and in line with consensus, the return to revenue growth after three years of declines positions the group for stronger operating leverage into FY 2026.

From a capital allocation standpoint, the company appears to be taking a measured approach. There was no indication of near-term M&A activity, with emphasis placed instead on internal brand building, B2B distribution, and platform partnerships. Lookfantastic’s integration into the M&S ecosystem through ESPA’s 60 SKU rollout is one such example, adding exposure to both digital and retail loyalty channels through the Sparks programme.

How does this shift the narrative for investors ahead of FY 2026?

Institutional sentiment toward THG has remained cautious since the demerger of THG Ingenuity, but the Q4 2025 beat may prompt some reassessment. The beauty segment in particular appears to have exited FY 2025 with higher brand equity, channel reach, and partner alignment than it entered with, and Nutrition is beginning to show the fruits of its international and category-led diversification.

While some risk factors persist—including raw material pricing pressure, geopolitical headwinds in Asia, and the need to stabilize EBITDA margins amid portfolio churn—the trajectory heading into Q1 2026 appears directionally positive. With management signaling “high confidence” in current trading momentum and no major guidance resets, the company has left the door open for upside surprises in H1 2026 if macro conditions remain stable.

Investors will be closely watching for updates on activewear traction, regional performance divergence (especially in Asia), and incremental distribution wins in the U.S. market. Any signs of accelerating profitability, especially in the Beauty segment, could further shift the debate from turnaround stability to long-term growth optionality.

What are the key strategic and category signals from THG PLC’s Q4 2025 trading performance?

• The 7 percent constant currency Q4 revenue growth capped THG’s strongest quarter since 2021, beating internal guidance by a wide margin.
• THG Beauty’s Q4 rebound was led by Lookfantastic’s 16.2 percent growth in the UK and Ireland, solidifying its leadership in premium ecommerce.
• The decision to streamline the portfolio through disposals has largely played out, reducing future drag on group topline performance.
• Myprotein continues to dominate UK online nutrition and expand globally, aided by Mars, Müller, and Iceland collaborations.
• Activewear now represents 12 percent of THG Nutrition’s online sales, with half a million women’s leggings sold in FY 2025.
• Retail distribution strategy is accelerating, with new Myprotein products set to launch at Kroger and GNC in the U.S. during H1 2026.
• Cash and liquidity remain strong at £330 million, supporting reinvestment and working capital flexibility heading into 2026.
• FX headwinds diminished by Q4, with Euro strength helping offset Yen and Dollar weakness.
• THG reiterated FY 2025 EBITDA guidance in line with consensus, signaling stable margin outlook amid topline recovery.
• Early 2026 trading momentum has been described as strong, with both THG Beauty and THG Nutrition expected to sustain recent growth levels.