THG Shares Surge as E-commerce Giant Swings Back to Profitability
THG shares soared dramatically on Thursday, climbing 8.3 percent to 34.1p in early trading, following the announcement that the London-listed e-commerce firm has returned to profitability. This significant uptick marks a pivotal turnaround for the Manchester-based beauty and nutrition retailer, which reported a substantial profit after tax of £54.1 million for the full year 2025. This impressive result starkly contrasts with the previous year's loss of £326 million, showcasing a remarkable financial recovery.
Strategic Moves and Key Drivers Fuel Growth
The return to profitability was bolstered by several strategic initiatives, including the sale of the ingredients business Claremont in August, which contributed £103 million to the company's coffers. A major growth driver has been the explosive performance on TikTok Shop, where sales more than doubled compared to 2024. THG's online beauty store, Lookfantastic, has emerged as the top-selling multi-brand beauty retailer on the social media platform, capitalizing on the burgeoning trend of social commerce.
In the nutrition division, THG Nutrition experienced robust sales growth, primarily fueled by the increasing global awareness of the bodybuilding supplement Myprotein. The brand's products are now available in over 40,000 stores worldwide, and new licensing partnerships with global confectionery giant Mars have further expanded its market reach. The company is guiding for mid-to-high single-digit revenue growth in this division, alongside strong underlying growth in beauty product sales.
Potential Windfall and Leadership Vision
THG could be poised for an additional financial boost, with a potential windfall of up to £78 million if it succeeds in a claim with HMRC regarding the VAT treatment of its protein powder. This prospect adds another layer of optimism to the firm's financial outlook.
Chief Executive Matt Moulding described the past year as a coming of age moment for the company. He emphasized that the 21st year in business has been marked by accelerating momentum, a return to continuing revenue growth, decisive strategic actions, and a clear validation of THG's long-term vision. Moulding highlighted efforts to simplify the company's structure, sharpen focus on key territories and brands, and strengthen financial foundations as critical steps in this transformative phase.
It is noteworthy that THG plc was the former owner of City AM until its Ingenuity division demerged from the wider group at the beginning of 2025, underscoring the company's evolving corporate landscape amidst its financial resurgence.
