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1. Company Snapshot

1.a. Company Description

THG Plc operates as an e-commerce technology company in the United Kingdom, the United States, Europe, and internationally.The company operates pure-play sites, such as Lookfantastic, Cult Beauty, and Dermstore that offers approximately 1,300 premium brands across the skincare, haircare, cosmetics, and fragrance categories; Myprotein, a D2C sport nutrition provider that offers products across various categories, including vegan, protein, vitamin, athleisure, and healthy snacks; and THG Ingenuity, an end-to-end platform that powers businesses and brands, which offers hosting, analytics, fraud detection, logistics, and warehousing services, as well as digital brand management, including marketing, translation, and global customer services.It also engages in the online beauty and haircare businesses; and provision of skincare, haircare and cosmetics products.


In addition, the company operates THG OnDemand, which offers entertainment products and subscription services for clothing, gadgets, and vinyl; THG Experience that comprises of Three luxury event spaces, including King Street Townhouse Hotel, Great John Street Hotel, and Hale Country Club & Spa; and THG Luxury, which operates various websites that retails fashion and lifestyle brands.Further, it operates hairdressing salons and hotels; offers website development, franchising and consultancy, warehouse and distribution, environmental consulting, translation and interpretation, web hosting, and marketing services; distributes motion pictures; processes films; recovers sorted metals; and produces visual content.The company was formerly known as THG Holdings plc and changed its name to THG Plc in January 2021.


THG Plc was founded in 2004 and is based in Manchester, the United Kingdom.

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1.b. Last Insights on THG

THG Plc's recent performance has been positively driven by improved operational performance and growing confidence in revenue growth. Despite a 7.6% decline in revenue to £783.4m in the first half of 2025, the company's fair value estimate has edged up to £0.44. A marginal reduction in perceived risk, reflected in a slightly lower discount rate, has also contributed to the positive sentiment. However, high whey protein costs and slower trading in its beauty business have posed challenges. Analysts' sentiment remains mixed, with both optimism and caution persisting amid the evolving business landscape.

1.c. Company Highlights

2. THG's H1 2025 Earnings: Mixed Performance Amid Strategic Shifts

THG reported a 2.6% revenue decline to £783 million in H1 2025, driven by strategic restructuring in THG Beauty. THG Nutrition returned to 3% growth, fueled by the Myprotein global rebrand and rapid offline retail expansion. Adjusted EBITDA was £24 million (3.1% margin), pressured by high input costs. The balance sheet was strengthened via a £100+ million Claremont Ingredients sale, reducing gross debt by £374 million. EPS came in at -0.34267, missing estimates of -0.06876.

Publication Date: Sep -15

📋 Highlights
  • Revenue Decline & Divisional Growth: Group revenue fell 2.6% to £783M in H1 2025, but THG Nutrition grew 3% YoY with Myprotein driving offline retail expansion to 34,000+ doors.
  • Claremont Disposal & Debt Reduction: Sale of Claremont Ingredients for over £100M (acquired for £52M in 2020) reduced gross debt by £374M, improving balance sheet flexibility.
  • EBITDA Margin Recovery: Adjusted EBITDA stabilized at £24M (3.1% margin), reversing H2 2024 losses, as Nutrition margins improved with stabilized commodity prices.
  • Beauty Division Resilience: THG Beauty grew U.K. revenue, launched 70+ new brands, and expanded loyalty programs to 3M+ members despite strategic retail realignment.
  • Future Expansion & Margin Goals: Offline retail growth targets 100,000+ doors by year-end, with Nutrition margin expansion via D2C dominance and Beauty’s focus on U.K./U.S. retail.

Financial Performance

The group's revenue decline was largely due to the Beauty division's slower start, while Nutrition grew 3%. Adjusted EBITDA margin was 3.1%, impacted by high input costs. The Claremont sale significantly improved the balance sheet, with gross debt reduction and extended facilities to 2029.

Segment Performance

THG Beauty saw resilient U.K. growth and a 70+ new brand rollout, with loyalty programs exceeding 3 million members. Nutrition launched 200+ products and secured major U.S. Walmart distribution. Offline retail expansion is targeting 100,000+ retail doors by year-end.

Valuation Insights

THG's current valuation metrics indicate a 'P/E Ratio' of -1.35, 'P/B Ratio' of 1.44, and 'P/S Ratio' of 0.23. The 'EV/EBITDA' is -21.4, suggesting a complex valuation landscape. 'Free Cash Flow Yield' is 7.22%, which may attract income-focused investors.

Outlook

THG expects Q3 growth, driven by offline retail expansion and margin expansion from D2C strength. The VAT dispute with HMRC could yield a £45 million contingent asset if resolved. Licensing deals in ready-to-eat meals and global confectionery are advancing, supporting future growth.

3. NewsRoom

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How Analysts See the THG Story Changing After Index Addition and Strategy Shifts

Nov -30

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What Developments Are Shaping the Investment Story for THG?

Nov -16

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How the Narrative Surrounding THG Is Evolving Amid Analyst Upgrades and Renewed Caution

Nov -02

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What Catalysts Are Shaping the Evolving Story for THG?

Oct -18

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How Recent Events Are Rewriting the Story for THG

Sep -20

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THG First Half 2025 Earnings: UK£0.052 loss per share (vs UK£0.041 loss in 1H 2024)

Sep -13

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THG profits hit by high whey protein costs as trading gains momentum

Sep -11

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Myprotein owner THG cuts profit outlook after deal to sell flavourings brand

Aug -06

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.98%)

6. Segments

THG Beauty

Expected Growth: 8%

THG Beauty's 8% growth is driven by increasing demand for online beauty products, expansion into new markets, and strategic partnerships. The segment benefits from THG's proprietary technology platform, Ingenuity, which enhances customer experience and drives loyalty. Additionally, the company's focus on sustainability and eco-friendly products resonates with the growing conscious consumer base, contributing to its growth momentum.

THG Nutrition

Expected Growth: 6%

THG Nutrition's 6% growth is driven by increasing demand for healthy living, rising e-commerce adoption, and strategic partnerships. The segment benefits from THG Plc's strong digital marketing capabilities, expanding product offerings, and growing presence in the US market. Additionally, the company's focus on innovation, quality, and customer experience contributes to its sustained growth.

THG Ingenuity

Expected Growth: 9%

THG Ingenuity's 9% growth is driven by increasing demand for e-commerce solutions, strategic partnerships, and expansion into new markets. The segment's proprietary technology and innovative approach to digital transformation also contribute to its growth. Additionally, THG Plc's strong brand portfolio and investments in digital marketing capabilities further support Ingenuity's growth momentum.

Discontinued Operations

Expected Growth: 0%

THG Plc's Discontinued Operations with 0% growth is attributed to the absence of new business opportunities, lack of investment in this segment, and a strategic decision to focus on core operations. Additionally, intense competition, high operational costs, and declining market demand may have contributed to the stagnant growth.

Other

Expected Growth: 5%

THG Plc's 'Other' segment growth is driven by increasing demand for its nutrition and wellness products, expansion into new markets, and strategic partnerships. Additionally, the company's investments in e-commerce and digital marketing capabilities have enhanced customer engagement and retention, contributing to the 5% growth rate.

7. Detailed Products

MyProtein

A leading online retailer of sports nutrition and healthy lifestyle products

Lookfantastic

A leading online retailer of premium beauty and skincare products

Zavvi

An online retailer of entertainment products, including CDs, DVDs, and video games

Cyclone

A provider of e-commerce solutions and services for third-party brands

THG Ingenuity

A provider of proprietary e-commerce technology and services

THG Experience

A provider of experiential marketing and events services

8. THG Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

THG Plc operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the growing demand for e-commerce and digital services.

Bargaining Power Of Customers

THG Plc's customers have a high bargaining power due to the availability of alternative e-commerce platforms and the ease of switching costs.

Bargaining Power Of Suppliers

THG Plc has a diversified supplier base, which reduces the bargaining power of individual suppliers, and the company's scale of operations also gives it negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the high barriers to entry in the e-commerce and digital services market, but new entrants can still disrupt the market with innovative business models.

Intensity Of Rivalry

The intensity of rivalry in the e-commerce and digital services market is high due to the presence of established players and the need for continuous innovation to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.44%
Debt Cost 8.15%
Equity Weight 59.56%
Equity Cost 15.89%
WACC 12.76%
Leverage 67.89%

11. Quality Control: THG Plc passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
About You

A-Score: 4.7/10

Value: 6.5

Growth: 6.3

Quality: 2.7

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

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Fastned

A-Score: 3.4/10

Value: 4.8

Growth: 5.2

Quality: 2.2

Yield: 0.0

Momentum: 5.5

Volatility: 2.7

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ASOS

A-Score: 3.0/10

Value: 9.6

Growth: 2.2

Quality: 2.8

Yield: 0.0

Momentum: 1.5

Volatility: 2.0

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THG

A-Score: 2.7/10

Value: 8.1

Growth: 2.2

Quality: 2.9

Yield: 0.0

Momentum: 2.5

Volatility: 0.7

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Boohoo

A-Score: 2.7/10

Value: 6.5

Growth: 1.2

Quality: 2.1

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

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Cnova

A-Score: 1.9/10

Value: 8.0

Growth: 0.8

Quality: 2.6

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.45$

Current Price

0.45$

Potential

-0.00%

Expected Cash-Flows