THG revenue recovers as it reports first year of growth since 2021

THG achieved record revenue in the second half of 2025, exceeding previous guidance, as momentum in beauty continues into the new financial year. 

The owner of Cult Beauty and Lookfantastic saw revenue increase 6.7% in the second half, with THG Beauty reaching 5.5% growth and THG Nutrition up 9.2%.

For the full year, THG reported revenue growth of 2.3%, marking its first year of growth since 2021 and a recovery from a 2.5% decline recorded in the first half of the year.

The fourth quarter of FY25 was the strongest of the year, with group revenue growth of 7%, up from 6.3% in the previous quarter. Performance was supported by stronger trading in November and December, when revenue grew by approximately 8%.

THG Beauty recorded its strongest fourth-quarter growth since 2021, exceeding guidance. Growth was primarily driven by Lookfantastic, which reported a 16.2% increase in revenue across the UK and Ireland.

Within beauty, cosmetics and skincare delivered the strongest performance, with both categories gaining UK market share. The period also included a record contribution from advent calendar sales.

Among THG’s own brands, Perricone MD showed improved performance following a weaker first half, supported by increased investment in brand development and product formulation, as well as expanded B2B distribution.

ESPA also increased its retail presence, with 60 SKUs launched across more than 100 Marks & Spencer stores and online, increasing brand exposure through the retail giant's customer network.

In THG Nutrition, the sale of Claremont Ingredients in the third quarter of 2025 reduced revenue growth for the fourth quarter and full year.

However, the company said the division continued to adjust its geographic, channel, and category mix in response to sustained global demand for protein products, while managing margin pressures linked to elevated whey prices.

Myprotein held a 25% share of the UK online sports nutrition market and subscription revenues increased year-on-year, with growth more than doubling, supported by repeat customer demand.

Matthew Moulding, CEO of THG, said: "We finished 2025 on a high with our best quarter of the year thanks to a strong November and December period.

"In THG Beauty, our strategy to focus on core categories and territories is delivering clear results, with Lookfantastic UK achieving exceptional growth. We continue to accelerate our digital leadership, prioritising high-margin prestige brands and enhancing personalisation by increased use of AI and virtual tools.

"We enter the new year with strong trading momentum and a clear focus on continuing to deliver quality, value and newness for our customers."