THG profits hit by high whey protein costs as trading gains momentum

Online retailer THG has revealed weaker profits after being knocked by high whey protein costs, but pointed towards growing sales momentum.

Shares in the company, which runs brands including Myprotein and Cult Beauty, rose on Thursday.

It came as the firm, founded by Matthew Moulding, reported that adjusted earnings fell by 35.3% to £24 million over the first half of 2025, compared with a year earlier.

The group also told shareholders that total revenues fell by 2.6% year-on-year to £783.4 million.

THG said it was “held back” by record whey protein prices and “slower” trading in its beauty business over the first half.

Whey protein prices cut into profit margins amid continued strong demand, with suppliers in the sector still seeking to keep up pace.

The company said it has benefited from stronger trading from its Myprotein business to help it offset the impact of higher costs in the recent months.

Meanwhile, the firm’s beauty business saw sales slip by 5.9% over the half-year after pulling back from some sales activity in Europe and Asia.

THG said however that beauty is set to return to growth in the current half-year after strong trading since the start of July, with its nutrition business also reporting accelerating sales growth.

Mr Moulding said: “I’m really pleased at how THG has gained momentum throughout the first half and into Q3.

“As a business we’ve reaped the benefits of the recent extensive strategic initiatives across the group, including the global rebranding of Myprotein throughout 2024.

“I’m especially pleased with the response to the new positioning of the Myprotein brand, reflected in the exciting breadth of partnerships we’re delivering with other global brand owners and a return to new customer growth.

“Our beauty business particularly in the UK demonstrated impressive resilience, securing market share gains in Q2, with a growing loyalty base and successful new brand launches supporting a return to revenue growth in Q3.”

John Stevenson, analyst at Peel Hunt, said: “Momentum in nutrition is accelerating in terms of sales, doors, new launches, and licensing deals, pointing to a strong second half and 2026.”

Shares in THG were around 9% higher on Thursday.