THG Plc (THGHY) Q2 2025 Earnings Call Transcript

THG Plc reported positive H1 2025 results, with CEO Matthew Moulding noting building trading momentum and the successful culmination of strategic changes implemented last year. The company achieved a return to growth across both core businesses, notably a 3% revenue increase in its THG Nutrition division following the Myprotein rebrand and accelerated offline retail expansion. These outcomes, alongside focused investment in THG Beauty's own brands and prioritization of UK/US retail, underscore the resilience and positive growth trajectory of THG's digital-first model.

Analysis

THG Plc's H1 2025 results indicate a positive inflection point, validating the strategic overhaul initiated in the previous year. According to CEO Matthew Moulding, trading momentum is building, with the company achieving a return to growth across its core businesses after a period of focused execution. A standout achievement is the THG Nutrition division's 3% revenue growth, directly attributed to the successful global rebrand of its flagship Myprotein brand and its subsequent accelerated expansion into offline retail channels. This suggests a positive reception from both new and existing customers. The company has also streamlined operations by completing the demerger of its Ingenuity tech division and, within THG Beauty, divesting smaller assets to focus investment on its own brands and prioritize the key UK and US retail markets. Critically, management stated this positive trajectory is continuing into Q3, with both divisions delivering growth, reinforcing the resilience of its digital-first model.

Key Decisions for Investors

• The successful execution of the strategic pivot, evidenced by the 3% growth in the Nutrition division and positive Q3 outlook, suggests management's turnaround plan is gaining traction and may warrant a more constructive view on the equity.
• Investors should closely monitor the continued sales velocity from the Myprotein brand's offline retail expansion, as this is a primary driver of the current growth narrative and a key proof point for the new strategy.
• Given the restructuring in THG Beauty, performance in the prioritized UK and US markets will be critical; upcoming earnings reports should be scrutinized for signs of market share gains or margin improvement in this segment to confirm broad-based recovery.