THG reports strongest first quarter revenue growth since 2021

21st Apr 2026 11:07

(Sharecast News) - THG reported its strongest first-quarter revenue growth since 2021 on Tuesday, driven by momentum across its Beauty and Nutrition divisions, while reiterating full-year guidance.

Group revenue rose 4.6% year-on-year to £393.1m in the three months ended 31 March, or 7.0% on a constant currency basis.

The FTSE 250 company said the performance was supported by continued growth in both core segments, although disposals and discontinued activities reduced reported growth by 150 basis points and currency headwinds were most pronounced in the US.

THG Beauty generated revenue of £233.3m, up 2.4% year-on-year, or 5.8% on a constant currency basis, marking an acceleration from the second half of 2025.

The division benefited from strong US performance and a 7% increase in orders in the UK, where Lookfantastic continued to outperform the domestic prestige beauty market.

Growth was modestly impacted by disruption in the Middle East, which reduced group growth by around 30 basis points.

THG Nutrition reported revenue of £159.8m, up 8.1% year-on-year, or 8.8% at constant currency, with growth reaching 12.1% excluding Asia.

The division saw broad-based expansion across online and offline channels, supported by diversification into higher-margin categories such as activewear, creatine, hydration and collagen, alongside pricing and product optimisation to offset elevated whey costs.

THG highlighted continued operational progress in both divisions.

In beauty, momentum was driven by growth in active customers and new brand launches, with K-Beauty revenue more than doubling year-on-year.

In nutrition, activewear continued to scale rapidly, with annualised sales approaching £100m, while licensed products and retail partnerships supported further growth across new channels and geographies.

THG said it delivered its strongest first-quarter cash flow performance in three years and reiterated full-year free cash flow guidance of £25m to £50m.

The group added that it was continuing to monitor geopolitical developments in the Middle East, although affected regions accounted for less than 1.5% of revenue in the 2025 financial year.

"It is energising for everyone at THG to see such a strong start to 2026, building on the better-than-expected momentum we delivered in the second half of 2025," said chief executive Matthew Moulding.

"In beauty, Lookfantastic is once again outperforming the market following two years of business model change, while the US continues to perform strongly.

"In nutrition, our diversification into margin-accretive categories is now clearly paying dividends.

"Activewear continues to deliver exceptional growth, with annualised run-rate sales fast approaching £100m.

"Growth across activewear and other high-margin categories, including creatine, hydration and collagen, is helping to offset record whey commodity pricing.

"While the geopolitical backdrop remains uncertain, we enter the second quarter with confidence after a better-than-expected first quarter, giving us a stronger base against any unforeseen risks later in the year."

At 1046 BST, shares in THG were up 6.38% at 41.02p.

Reporting by Josh White for Sharecast.com.

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