THG is no longer a sprawling e‑commerce platform bet—post‑Ingenuity it’s an asymmetric, cash‑generation turnaround in global beauty and sports nutrition, with VAT and free cash flow as the key re‑rating triggers.
Overview
THG Plc has exited a multi-year restructuring cycle and, following the January 2, 2025 demerger of Ingenuity, is now effectively a streamlined consumer group (“RemainCo”) focused on THG Beauty and THG Nutrition. The investment debate has shifted from speculative platform optionality to execution on cash generation, margin expansion, and debt reduction. Beauty operates global prestige platforms (Lookfantastic, Cult Beauty, Dermstore) combining a marketplace of 1,300+ third‑party brands with an increasingly important owned-brand portfolio that can deliver higher gross margins. Nutrition is led by Myprotein, the world’s largest online sports nutrition brand, now broadening into wellness, activewear, and especially B2B licensing that places Myprotein-branded products into mainstream retail. FY2025 marks a clear inflection: continuing CCY revenue grew 2.3% to £1.72bn, Q4 growth reached +7.2%, and THG returned to operating profit (£8.1m vs. -£147.9m) while net debt fell to £233m. With refinancing extending maturities to 2029 and asset disposals improving the balance sheet, management guides to meaningful positive FCF of £25m–£50m in FY2026—now the core proof point for a re‑rating.