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Investing.com -- THG (LON:THG) reported a return to constant currency revenue growth in the second quarter, supported by improving trends in its Nutrition and Beauty divisions, sending shares up by over 8% on Wednesday.
The company reiterated its full-year 2025 guidance ahead of its annual general meeting. Nutrition revenue is set to rise between 5% and 7% in Q2, accelerating from 0.1% growth in Q1.
This marks the fastest rate of growth in the segment since the first quarter of 2022 and follows a 9% decline in fiscal 2024.
On a two-year basis, Nutrition’s performance has improved from -13% in Q4 2024 to around -3% in Q2 2025.
Jefferies cited offline and licensing channels as key contributors to the rebound. THG reported new listings in Europe and Asia and expects U.S. retail doors to expand from 1,500 to 8,400 in fiscal 2025.
Growth in average selling prices also supported the quarter, helped by brand repositioning and partnerships with Muller and Hyrox.
The company flagged June as a strong month, indicating a near double-digit exit rate for the quarter.
Beauty, which declined about 10% in Q1, is expected to report a smaller drop of 2% to 3% in Q2.
The two-year trend edged down to approximately +1% from +4% in the prior quarter. Jefferies said the shift was largely due to timing effects in own-brand orders, which are expected to reverse in the third quarter. Own-brand timing contributed an estimated 200 basis point drag in Q2.
Beauty retail, excluding own-brand and manufacturing, showed stable trading, with the U.K. posting its highest growth since Q1 2024.
Jefferies said the ongoing pullback from certain territories in Europe and Asia created a 2–3 percentage point drag, which should diminish in the second half.
THG formally reiterated its full-year 2025 guidance. Jefferies maintained its forecast for continuing revenue growth of +4% and adjusted EBITDA of £101 million. Tariffs are expected to have a direct cost impact of £1 million.
The firm also noted signs of softening whey prices, which have weighed on margins in Nutrition.
If sustained, this could support margin recovery in the second half of the year. Jefferies said profit delivery is likely to be weighted toward the second half, with Nutrition and Beauty expected to benefit from easier comparables, falling whey prices, and normalization in own-brand order timing.
Jefferies added that while fiscal 2025 reflects transitional costs from tariffs and restructuring, fiscal 2026 is expected to mark a shift toward stronger cash generation, supported by resumed growth in both core divisions.