London · Delayed Price · Currency is GBP · Price in GBX THG Plc Earnings Call Transcripts
Fiscal Year 2025
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FY2025 results exceeded expectations with strong revenue and EBITDA growth, driven by record brand launches in beauty and robust performance in nutrition. Margin improvements are expected from VAT changes and commodity normalization, with further growth guided for 2026.
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Revenue grew 2.3% year-over-year, led by strong Beauty and Nutrition segment recoveries, operational efficiencies, and digital channel expansion. Debt refinancing improved liquidity, while strategic investments and market shifts position the business for margin expansion in 2026.
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Delivered record H2 and strongest quarter, with Q4 revenue up 7% and full-year growth for the first time since 2021. Beauty and nutrition segments outperformed, though margins remain pressured by high whey prices and currency headwinds. Portfolio optimization and strategic investments set up strong momentum for 2026.
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Q3 2025 delivered 6.3% revenue growth, with both Beauty and Nutrition divisions in growth and strong expansion in offline and licensing channels. Portfolio optimization continues, and the group is well positioned for its most profitable quarter, supported by successful model changes.
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H1 saw improved trading momentum, with Nutrition returning to growth and Beauty rebounding in Q3. Revenue declined 2.6% year-over-year due to strategic actions, but EBITDA margin held at 3.1%. Asset disposals and refinancing strengthened the balance sheet.
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Whey protein supply is set to increase, easing cost pressures and supporting nutrition margin recovery. Beauty division growth accelerated, with profitability targets met and a shift to brand marketing. Strong cash position and reduced leverage provide flexibility for further strategic initiatives.
Fiscal Year 2024
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Revenue grew 1% to GBP 1.9 billion in 2024, with EBITDA up 1% to GBP 123.1 million. Beauty outperformed with margin expansion and retail growth, while Nutrition faced headwinds but saw offline and B2B gains. Debt was refinanced, leverage reduced, and mid-single-digit growth is guided for 2025.
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Plans for the Ingenuity demerger are advancing, supported by a £95 million equity raise and a strategic partnership with Frasers. RemainCo is set for strong cash generation, reduced leverage, and a net reduction in shares. Beauty and Ingenuity divisions are performing well, with Myprotein’s offline growth accelerating.
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H1 saw record performances in Beauty and Ingenuity, while Nutrition faced FX and rebrand headwinds but is set for renewed growth. Guidance is at the lower end of consensus, with strong cash generation expected post-demerger and significant progress on the Ingenuity separation.