Half-year Results

H1 Adjusted EBITDA of £42.8m, +109%[1] YoY and ahead of guidance of at least £40m

Strongest H1 free cash flow delivery since 2021

Full year revenue, Adjusted EBITDA and free cash flow in line with consensus[2]

THG PLC ("THG" or the "Group"), announces its interim results for the half-year ended 30 June 2026 ("H1 2026").

Figures and commentary reflect continuing CCY[3] unless otherwise stated.

Key financial headlines

• Solid Group revenue growth: £828.7m, +7.2% YoY and above guidance of +6.5%[4].

○ Both THG Beauty and THG Nutrition in growth for four consecutive quarters.

○ THG Beauty delivered +5.9% revenue growth in H1, with THG Nutrition a highlight at +9.2%, +12.1% excluding Asia.

• Consistent gross margin[5]: 41.1% (H1 2025: 41.1%).

○ THG Nutrition's gross margin5 improved to 44.6% (H1 2025: 43.4%), up 120bps, as the whey mitigation strategy, channel diversification and growth in margin-accretive categories continues to build momentum.

○ THG Beauty's gross margin5 of 38.8% (H1 2025: 39.7%) reflects a 90bps reduction, primarily driven by a phasing of orders within manufacturing from H1 into H2.

• Adjusted EBITDA grew by +109% on a LFL basis1 to £42.8m (H1 2025: £24.0m, and £20.5m when excluding H1 2025 contribution from Claremont Ingredients, which was sold in August 2025).
• Strong profitability growth for THG Nutrition reflected a 210bps improvement in Group Adjusted EBITDA margin to 5.2% (H1 2025: 3.1%)
• Cash and available facilities of £238.7m, with free cash flow improving by £6.8m vs H1 2025.

Matthew Moulding, CEO of THG, commented:

"THG delivered a strong first half, reflecting our successful transition from a capex-intensive technology and consumer brands group into a highly profitable global leader in Nutrition and Beauty, focused on delivering sustainable growth in free cash flow. As a business, we delivered strong revenue growth and our Adjusted EBITDA more than doubled, driven by a stellar performance from the Myprotein brand."

"The Group is now clearly reaping the rewards of Myprotein's global rebrand delivered across 2023 and 2024, alongside the expansion of the brand into licensing, activewear and higher-margin categories. Brand recognition continues to reach record highs, supporting a 57% increase in Myprotein branded products sold worldwide in H1, to 58.5m products. The brand is on track to sell over 130m products in FY 2026, which we believe makes Myprotein not only the world's largest sports nutrition brand, but also the fastest-growing established brand by product volumes."

"THG Beauty continues to strengthen its position as a leading global digital beauty platform, underpinned by technology leadership, exciting new brand partnerships and strong brand health."

"The strength of these first-half results demonstrates the progress we've made and the quality of the Group we have today. Looking ahead, we enter H2 with real momentum, whilst also acknowledging broader market challenges around consumer discretionary spend, record high whey commodity pricing, as well as recent EU tariffs. The Group has delivered significant initiatives to mitigate these headwinds, supporting FY 2026 consensus, while positive signs around the direction of whey input costs are encouraging for the future."

H1 2026 Group trading performance

All numbers and tables subject to rounding.

H1 2026 highlights

THG Nutrition

• Myprotein significantly strengthened its position as the world's largest online sports nutrition brand, delivering revenue growth of +9.2%, increasing to +12.1% excluding Asia, with the retail model in that region transitioning from direct sales to a licensing model which is expected to be completed during H1 2027.
• In H1 2026, 58.5m Myprotein branded products were sold worldwide, compared to 37.2m in H1 2025 (+57% increase)[10]. The Myprotein brand is on track to sell in excess of c.130m units for FY 2026, with a significant pipeline for further expansion.
• Profit metrics substantially improved through pricing, innovation and channel diversification initiatives. A combination of solid revenue growth, adjusted gross margin improvement of +120bps to 44.6%, and rigid cost control across the business, combined with the application of zero-rating of VAT on certain products, led to H1 2026 Adjusted EBITDA more than trebling to £26.0m from £8.5m1 in H1 2025.
• Product innovation accelerated through H1 to broaden the Myprotein proposition, with several successful launches. These include Impact Whey Milkshake, which extends the flagship franchise into a thicker, milkshake-style format, and the Whey + range offering more protein options to match the needs and wants of a widening customer demographic.
• Strategic licensing-in partnerships deepened, with the Mars relationship extended through new Bounty and Twix launches building on the existing Mars and Snickers range. The range has proved successful in introducing new customers to both the Myprotein and Mars brands alike, with 1 in 5 Mars buyers having not shopped with Myprotein before.
• Licensing-out partnerships continue to scale rapidly, with royalty income increasing +64% YoY. Licensing-out delivered a retail sales value of £75m, +83% YoY. FY 2026 sell-in volumes are on track to exceed the targeted 60 million units (FY 2025: 43 million) extending the reach of the Myprotein brand well beyond D2C channels and reinforcing consumer awareness. Licensing-out partnership highlights include: Müller and Myprotein winning the Gold award at The Drum Awards for Best Partnership or Collaboration and the expansion of the Iceland partnership into Europe through the launch of high-protein products.
• A long-term focus on food to go channels is now yielding results. Myprotein's market leading quality, combined with an unrivalled global brand following, has led to deals with Five Guys as well as teaming up with Spoon Cereals with both partnerships continuing to allow Myprotein to reach new consumption occasions.
• B2B and offline expansion continued through new customer listings and deeper strategic partnerships, as evidenced by the launch of the Vimto protein water, with offline channel revenue growth +22% YoY1. The business continues to make progress expanding its presence across international territories with model shifts supporting the offline strategy.
• Categories including hydration, creatine, collagen and activewear continued to grow their contribution, supporting margin enhancement.

o Activewear had a standout H1, with 18.5% of Myprotein online customers including a purchase of activewear in their basket contributing to +30% higher AOVs compared to non-activewear orders, and with annualised activewear run-rate sales approaching the Group's £100m ambition.

• Enhancements to the online customer experience, with the launch of Fuel Coach, the AI-powered shopping assistant alongside virtual try-on for activewear. Fuel Coach resulted in 5.5x increase in first time buyer conversion and +15% AOV.

THG Beauty

• THG Beauty strengthened its position as a leading global prestige beauty platform, delivering revenue growth of +5.9%, Adjusted EBITDA growth of +23.8% with +80bps EBITDA margin improvement.
• THG Beauty Retail continued to gain market share across key markets, with Lookfantastic outperforming the UK prestige beauty market[11] and Dermstore also achieving market gains in the US. Performance underpinned by relationships with premium global beauty brands, with 50+ new launches during the period, including the recent launch of Clarins on Lookfantastic, a significant addition to the site's premium beauty portfolio.
• Customer acquisition and engagement continued to strengthen through both emerging trends and new channels. K-Beauty remained a significant growth driver, attracting more than 64,000 new customers in H1.
• Dermstore continues to perform strongly as the US market leader in high-intent clinical skincare. During the period, it expanded its successful Flex offering through an exclusive partnership with HealthEquity's marketplace opening a new route to tax-advantaged healthcare spend. Separately, Dermstore launched a pilot patient referral programme connecting online skincare discovery with in-clinic aesthetic treatments. Early results validate a significant opportunity to drive demand into partner practices and further monetise the customer journey.
• Our leading partnership with Google has resulted in THG Beauty's launch of an AI on site assistant and upcoming participation in multiple category-leading pilot programmes over the next six months, keeping us at the forefront of how beauty is discovered and bought in an AI-first world. AI-powered customer tools on site (with AI Assistant launching in Q3) are driving materially higher conversion, with the pilot showing customers 7.5x more likely to purchase after use, positioning THG Beauty at the forefront of agentic commerce as we head into H2.
• THG Beauty continued to extend its leadership across emerging digital channels, with Lookfantastic maintaining the #1 multi-brand beauty retailer spot on UK TikTok Shop throughout 2026[12]. Revenue increased by +26% YoY, demonstrating the growing importance of social and creator-led commerce in acquiring and engaging beauty consumers.

Group

• Group revenue of £828.7m (H1 2025: £783.4m), +7.2% continuing CCY, with both THG Beauty and THG Nutrition in growth for the fourth consecutive quarter (+8.1% excluding THG Nutrition Asia).
• Group Adjusted EBITDA of £42.8m (H1 2025: £24.0m), a margin of 5.2% (H1 2025: 3.1%), +210bps.
• Group statutory operating loss (continuing) of £10.6m (H1 2025: £30.0m), improved due to substantially improved trading. Operating loss includes adjusted items of £5.6m (H1 2025: £5.3m), comprising £4.3m cash and £1.3m non-cash items (H1 2025: £1.7m cash, £3.7m non-cash) primarily related to restructuring costs as we continue to optimise the cost base.
• Cash flows in respect of capital expenditure were £10.0m (H1 2025: £10.5m), with net finance costs and lease repayments £14.2m (H1 2025: £16.3m) and £10.0m (H1 2025: £10.4m) respectively, leading to an improved free cash outflow of £70.9m (H1 2025: £77.7m) after the expected seasonal working capital profile. Net debt before lease liabilities of £329.7m (H1 2025: £321.4m) driven by the working capital outflow and cash adjusting items primarily related to restructuring and the final payment in respect of the demerger.
• Net debt of £329.7m includes one off payments in respect of the THG Ingenuity demerger. Without these payments, net debt before lease liabilities would total £262.8m (H1 2025: £311.6m). H1 2026 follows the usual seasonal working capital unwind. H1 2026 included a working capital investment within THG Nutrition following substantial increases in raw materials costs. This investment is expected to unwind across H2 2026 and H1 2027.
• Group statutory result for the period was a loss of £43.7m (H1 2025: profit of £76.3m); the prior year included a one-off net gain of £142.4m on discontinued operations recognised in connection with the demerger of THG Ingenuity, which did not recur in the current period.
• On 25 August 2026, Moody's revised the Group's Term Loan B rating to a B3 stable outlook from negative, in recognition of the ongoing strong trading performance and outlook for 2026 and 2027. THG's Term Loan B continues to trade strongly near par, with strong momentum in trading performance achieved since the beginning of the year.

Outlook and guidance

• Full year expectations remain in line with consensus, underpinned by delivery of H1 Group revenue growth of +7.2%, H1 2026 Adjusted EBITDA of £42.8m with LTM Adjusted EBITDA of £95.4m providing confidence.
• The Group delivered c.5% revenue growth in July and August across its core brands and markets[13]. We expect consistent growth to continue through September, underpinned by a strong start to our advent calendar sales.
• Whilst Q3 earnings and cash generation are expected to be in line and robust, Q3 revenues have been impacted by the European heatwave slowing demand in part, but primarily by EU duty for THG Beauty[14] being applied since 1 July 2026 and own-brand beauty revenues phasing into Q4 and FY 2027. These factors we expect to be one-off in nature but which drive an expectation for the Group to deliver c.2% revenue growth in Q3.
• Given the strong performance through core brands and markets in Q3 (+5%) and certain revenue phasing into Q4, we expect Q4 to deliver 6% to 7% revenue growth. H2 trading confidence is underpinned by Q3 and Q4 revenues and EBITDA annual weighting in line with historical norms, with the Group in excellent position to execute its trading strategies.
• The Group remains focused on generating significant positive free cash flow and is on target to deliver £25m to £35m positive free cash flow for FY 2026, in line with consensus, acknowledging the investment in whey input costs which are expected to begin to reduce from their elevated levels into 2027.
• FY 2027 EBITDA progression, alongside improving working capital position in a lower whey cost environment, should lead to a material growth in positive free cash flow which, alongside receipt of the VAT claim (see detail below), results in FY 2027 net debt (excluding leases) of c.1 x leverage.
• Following the successful sale of Claremont Ingredients in August 2025 for £103m, several of the Group's other non-strategic, standalone brands and assets have attracted bid interest. Should any sale occur at some point in the near future, it is expected that any proceeds would be higher than that for Claremont Ingredients, moving the Group from net debt to net cash positive for FY 2027.
• 2026 current trade and outlook re-enforce our confidence in the sustainability of the stated base line divisional EBITDA margins for THG Beauty and THG Nutrition of +6% and +12% respectively. Whilst THG Nutrition margins have yet to return to these historical and medium-term norms, the improving forward view on the whey cost coupled with the non-whey revenue diversification strategy underpins our view.

Whey commodity outlook

• There are early signs the price inflation challenges in the commodity whey market are easing. Whilst input costs significantly increased throughout H1 2026 and have done so further into Q3, key pricing indices have recently, albeit modestly, declined for the first time in more than two years with forward looking buying discussions into Q4 and FY 2027 indicating a marked improvement in the demand supply imbalance, although remaining high by historical levels.
• Through category and channel expansion, new product development and strict cost controls, THG Nutrition is well positioned to deliver a further significant uplift in profitability as whey commodity prices ease.

VAT update

• In early 2026, HMRC were refused permission to appeal the First-tier Tribunal decision on 'Sunwarrior' (Global by Nature Limited) protein powders, which ruled Sunwarrior protein powders qualified for zero-rated VAT.
• As previously communicated, the Group has submitted retrospective claims to HMRC. Successful claims would result in a cash payment of c.£60m on protein and collagen powders, with a further claim of c.£18m in respect of certain supplements.
• HMRC initially notified the Group that it would respond to its claims by late Spring 2026. HMRC has since notified the Group that it will not be in a position to provide a substantive update until the end of October 2026. The Group continues to explore options to accelerate the repayment process.
• Since January 2026, THG Nutrition has applied the VAT zero rate to certain products in accordance with the Tribunal's decision in Global by Nature and has informed HMRC of the same.

Analyst and investor conference call

THG will today host a conference call and webcast for analysts and investors at 8.30am (UK time).

To register for the webcast, please use the below link:

To ask questions, you must dial in via conference line using the below details:

• UK-Wide: +44 (0) 33 0551 0200
• UK Toll Free: 0808 109 0700
• USA Local: +1 786 697 3501
• USA Toll Free: 866 580 3963
• Password: THG - HY Results

Appendix

Quarterly continuing constant currency revenue growth rate

Chief Financial Officer's Review

H1 2026 represents a period of structural margin improvement. Our financial performance reflects the deliberate strategic actions taken over the past 24 months to optimise our cost base and evolve our operating models. Group Adjusted EBITDA increased to £42.8m, driven by margin enhancement in THG Nutrition and robust operational discipline in THG Beauty, while our statutory operating loss was reduced by 65% to £10.6m.

Total Group overview[15]

THG Nutrition

THG Nutrition reported revenue of £328.5m (H1 2025: £303.6m), growth of +8.2% YoY, (+9.2% continuing CCY, excluding Asia +12.1%) in H1 2026 as the planned transition to a partnership-led licensing model in the region continues to progress.

Revenue growth was driven by:

• Continued growth across marketplace channels as consumers increasingly purchase health and wellness products through third-party platforms, supporting both customer acquisition and brand reach.
• Further progress in offline and licensing channels, with deeper strategic partnerships, new product launches and increasing brand awareness.
• Strategic pricing actions and product reformulations implemented during Q2 in response to sustained elevated raw material costs. Whilst pricing-led growth impacted volume as anticipated, innovation across the range and the continued expansion of higher-margin growth categories led to customer engagement remaining strong, with revenue from returning customers increasing to 83% (H1 2025: 82%) alongside increased average order values, supported by increased cross category participation and basket size, with orders including activewear delivering a 30% increase in order value.
• Manufacturing was broadly stable, whilst the adoption of zero-rating VAT for selected protein and collagen products from January 2026 also contributed.

Adjusted gross profit for the period was £146.6m (H1 2025: £131.8m), representing a gross margin of 44.6% (H1 2025: 43.4%), an improvement of 120bps.

This improvement was delivered against a continued inflationary commodity backdrop. Whey protein costs increased further during H1 2026 and remained materially above historical levels, driven by sustained global demand for protein products and the continued expansion of protein consumption beyond traditional sports nutrition consumers.

In response, THG Nutrition has continued to execute a structural strategy focused on channel and product diversification, new product innovation and pricing discipline. New product development has included new and revised formulations designed to offer more choice for different consumer wants and occasions, while investment has accelerated behind higher margin-growth categories including creatine, hydration, collagen and activewear. Together, these initiatives have begun to reduce the sensitivity of the business to whey price movements and improving the quality of earnings generated. The continued expansion of these categories is expected to provide further mitigation against a backdrop of higher whey cost inflation anticipated in H2.

Whilst H2 is forecast to see yet further whey material cost increases relative to H1, the Group has started to secure forward pricing for Q4 and are negotiating whey requirements into next year at levels notably below the current spot price which management believes indicate signs of easing prices into 2027.

As a result, THG Nutrition has reduced the gap between prevailing commodity costs and the historical profitability profile of the Myprotein business. Supported by its vertically integrated manufacturing, management believes the business is increasingly well positioned to deliver a progressive recovery in gross margin and Adjusted EBITDA margin to the medium-term guidance of c.12%. Particularly as whey commodity markets normalise, and the product and channel diversification continues to progress.

Adjusted EBITDA for the period was £26.0m (H1 2025: £12.0m), representing a margin of 7.9% (H1 2025: 3.9%), an improvement of 400bps. Excluding the disposal of Claremont Ingredients, EBITDA margin improved by 510bps YoY.

This significant improvement reflects the combined impact of pricing actions, product mix, continued growth in higher-margin categories, operational leverage and the increasing contribution from marketplaces, licensing and offline partnerships alongside a tailwind from the change to zero-rating VAT rating on certain protein products. Adjusted EBITDA margin is ahead of H1 2024 by 240bps1 despite a 50% increase in whey pricing demonstrating the progression made over the last 24 months.

THG Beauty

THG Beauty reported revenue of £500.2m (H1 2025: £479.9m), growth of +4.2% YoY. +5.9% CCY.

The primary driver of revenue growth was THG Beauty Retail, including particularly strong UK Retail performance of +6.7%. This was supported by market share gains, premium brand launches and continued momentum in key growth categories like skincare +17.4% YTD for Lookfantastic.

Customer health metrics remained robust. Active customers were maintained at 7.5 million YoY, loyalty membership increased by 9% to 3.5 million and revenue from returning customers increased to c.90% of sales (H1 2025: c.89%) demonstrating continued customer engagement and repeat purchasing behaviour. Average order values marginally increased with improved LTM D2C orders up to 16.1m (H1 2025: LTM 15.4m) reflecting a deliberate focus on customer quality and profitability.

Adjusted gross profit increased to £194.1m from £190.4m in H1 2025, representing growth +1.9%. Adjusted gross margin reduced by 90bps to 38.8% (H1 2025: 39.7%). The movement principally reflects the phasing of some orders from H1 into H2 for manufacturing. Margin performance remained within our medium-term guided range of 38% - 40%.

Adjusted EBITDA increased to £25.0m (H1 2025: £20.2m), and margin increased to 5.0% (H1 2025: 4.2%), an improvement of 80bps. Focused optimisation of the cost base (primarily payroll) has driven much of the margin improvement, as the business continues to focus on streamlining processes and leaning into AI enhancements.

Own-brand revenue and gross profit were broadly stable versus prior year, while cost-saving initiatives supported an improvement in bottom-line contribution.

Central costs

Central costs for the period were £8.3m (H1 2025: £8.2m), consistent with the prior period and representing approximately 1.0% of Group sales. These costs relate primarily to PLC Board remuneration, insurance, professional services fees, Group finance, corporate development and governance costs that are not recharged to the operating businesses as they principally relate to the operations of the PLC holding company.

Geographical review of revenue

The following table provides an analysis of revenue by region (by customer location):

The UK continues to be the Group's largest market, growing +20.7% in the period to account for 56.8% of Group revenue (H1 2025: 49.8%), with both THG Beauty and THG Nutrition delivering strong UK performances.

The US declined -8.9% to £128.7m (H1 2025: £141.3m). Approximately a third of the decline was driven by currency translation, alongside another third coming from the US manufacturing business where the phasing of sales into H1 have further impacted. Dermstore continues to perform strongly in the US, delivering revenue growth on a CCY basis. The US remains a key strategic market for the Group; continued investment in the territory reflects a deliberate, long-term build towards scale.

Europe was broadly stable, at £165.7m a decrease of -0.8% (H1 2025: £167.0m).

Revenue in the rest of the world reduced by -25.1% to £63.9m (H1 2025: £85.4m), principally reflecting the ongoing, intentional pivot in Asia towards licensing with pre-eminent local manufacturing and distribution partners for THG Nutrition. This transition is expected to position the business for structurally higher-margin delivery as the model scales. THG Nutrition CCY revenue growth excluding Asia was +12.1% in H1 2026.

Group financial review

Statutory results

Adjusted profit measures with reconciliation to statutory result

Management have presented alternative performance measures to provide stakeholders with additional helpful information on the performance of the business. These are consistent with how business performance is monitored and reported to the Board. The below tables reconcile the adjusted (management) view to the statutory result.

Amortisation and depreciation £m

Revenue

Group statutory continuing revenue increased by +5.8% to £828.7m (H1 2025: £783.4m), or +7.2% on a continuing CCY basis (+8.1% excluding THG Nutrition Asia). The growth drivers are set out within the business reviews earlier in this report.

Gross profit

Adjusted gross profit was £340.7m (H1 2025: £322.2m), broadly stable as a margin at 41.1% (H1 2025: 41.1%).

Gross profit on a statutory basis totalled £339.3m (H1 2025: £321.2m) and a margin of 40.9% (H1 2025: 41.0%). The difference to the above, reflecting the impact of adjusted items.

Distribution costs

Adjusted distribution costs were £99.6m (H1 2025: £99.2m), equivalent to 12.0% of revenue (H1 2025: 12.7%), an improvement of 70bps. This reflects a favourable territory mix and improving order volumetrics providing scale benefits.

Distribution costs on a statutory basis totalled £104.3m (H1 2025: £104.0m), being 12.6% (H1 2025: 13.3%) of revenue. The reduction YoY is driven by the reasons set out above.

Administration costs

Adjusted administrative costs were £198.4m (H1 2025: £199.1m), equivalent to 23.9% of revenue (H1 2025: 25.4%), an improvement of 150bps. This reflects the continued benefit of the Group's cost-saving programme, including process efficiencies, partially offset by continued investment in marketing and technology.

Administrative costs on a statutory basis totalled £245.6m (H1 2025: £247.3m), decreasing period on period as a percentage of revenue for the reasons set out above.

Adjusted EBITDA and Adjusted EBITDA margin

The drivers are set out in the THG Beauty and THG Nutrition reviews earlier.

Adjusted items

Adjusted items totalled £5.6m in the period (H1 2025: £5.3m), broadly consistent with the prior year. Adjusting items in the current period primarily comprise one-off costs associated with the Group's ongoing strategic and cost programmes. For full details of each category of adjusted items, see note 3 to the financial statements.

Depreciation and amortisation

Statutory depreciation and amortisation costs were £13.1m and £27.0m respectively (H1 2025: £15.5m and £30.3m). Included within amortisation is £19.4m (H1 2025: £21.7m) of amortisation on acquired intangibles (see below) relating to historical acquisitions.

Charges have decreased year on year relating to some assets being fully written down.

Amortisation on acquired intangibles £19.4m (H1 2025: £21.7m)

Given the number of significant acquisitions made across 2017 to 2022, primarily within THG Beauty, we consider this amount should be viewed separately to other amortisation to ensure comparability to those who undertook fewer or no acquisitions. This is a non-cash cost.

The reduction in the amortisation is due to some of the assets now being fully written down.

Finance costs net of finance income

Finance costs net of finance income reduced significantly to £25.7m (H1 2025: £36.6m), reflecting a non-cash accounting charge of approximately £11m in 2025 connected to the refinancing.

Loss before tax from continuing operations and tax rate

Loss before tax from continuing operations was £36.3m (H1 2025: £66.7m), an improvement of £30.4m, reflecting the substantially improved trading performance and lower finance costs discussed above. The associated income tax charge for the period is £7.4m (H1 2025: tax credit of £0.6m), giving rise to an effective tax rate of 20.3% (H1 2025: 0.9%). The rate was principally impacted by the non-recognition of deferred tax assets on losses in certain jurisdictions.

At 30 June 2026, the Group held a net deferred tax liability of £48.6m (H1 2025: £54.0m), primarily relating to acquisition-related intangible assets. The deferred tax position moved from a credit of £1.9m in H1 2025 to a charge of £6.0m in H1 2026. The movement primarily reflects the UK deferred tax position, including the impact of current-year taxable profits and interest restrictions, together with the non-recognition of deferred tax assets where recoverability is not considered sufficiently probable.

Profit/(loss) for the financial period

The Group's loss for the financial period from continuing operations reduced to £43.7m (H1 2025: loss of £66.1m), an improvement of £22.4m.

The Group's total statutory result for the period was a loss of £43.7m (H1 2025: profit of £76.3m). The prior year result benefited from a one-off net gain of £142.4m on discontinued operations, recognised in connection with the demerger of THG Ingenuity. Excluding this one-off item, the Group's underlying continuing operations performance improved substantially year on year.

Earnings per share

Loss per share on continuing operations was a loss of £(0.03) per share (H1 2025: loss of £(0.05) per share).

Free cash outflow for H1 2026 was £70.9m (H1 2025: £77.7m outflow), representing an improvement of £6.8m period-on-period despite a higher working capital outflow. The improvement was primarily driven by significantly stronger Adjusted EBITDA of £42.8m (H1 2025: £24.0m), reflecting the operational progress delivered across the Group during the period.

Working capital outflow totalled £69.6m (H1 2025: £59.7m outflow) up from prior period due to phasing of VAT payments. This reflects the normal seasonal profile of the business, where working capital typically unwinds during the first half of the year before rebuilding in the second half. The Group continues to see working capital rebuild from the peak cyber period unwind experienced during the first quarter, consistent with previous years.

Capital expenditure remained well controlled, and lease and net interest payments both reduced, reflecting the benefits of the Group's refinancing activities and lower average debt levels. Cash payments relating to adjusting items were £5.9m (H1 2025: £3.6m), primarily relating to payroll restructuring, vacant premises and project-related costs.

Net repayment of bank borrowings were significantly lower than the prior year. H1 2025 included the repayment of £181.7m of borrowings following the Group's refinancing and demerger-related activities, whereas H1 2026 included only £3.1m of net debt repayments. Distribution payments during the period were £20.2m (H1 2025: £9.8m) reflecting the final settlement post demerger as disclosed and recognised at 31 December 2025.

As a result, cash and cash equivalents reduced during the period, as set out in the Balance sheet section below. The Group ended the period with a healthy liquidity position with available funds of £238.7m, comprising cash balances as above alongside an undrawn revolving credit facility of £150.0m.

Balance sheet

Cash and cash equivalents and net debt before lease liabilities

At 30 June 2026, the Group held £88.7m in cash and cash equivalents (H1 2025: £129.4m, FY 2025 £183.1m).

Net debt increased to £476.8m (H1 2025: £448.4m; FY 2025: £363.8m), reflecting the seasonal unwind of working capital during the period. The increase from H1 2025 is driven through working capital investment in relation to higher whey input prices.

Net debt before lease liabilities totalled £329.7m (H1 2025: net debt before lease liabilities £321.4m, 31 December 2025: £233.0m). Excluding the one-off items for the THG Ingenuity demerger net debt before lease liabilities would total £262.8m (H1 2025: £311.6m), a decrease YoY.

Borrowings reduced to £428.8m (H1 2025: £457.9m; FY 2025: £430.4m), including a small debt repayment. Lease liabilities increased modestly to £147.0m (H1 2025: £127.0m; FY 2025: £130.8m), principally due to a new lease and a lease extension entered into during the period to support US operations.

Non-current assets

Property, plant and equipment totalled £53.0m (H1 2025: £60.9m, 31 December 2025: £55.8m). Intangible assets totalled £827.2m (H1 2025: £857.4m, 31 December 2025: £836.0m) with the reduction in intangibles driven by the amortisation charge (see earlier) partially offset by the foreign exchange rate impact for US dollar denominated assets.

Right-of-use-assets totalled £131.9m (H1 2025: £114.1m, FY 2025: £116.8m) with the new lease addition offset by depreciation in the period.

Going concern

In making their assessment of going concern, the Directors reviewed financial projections until 30 September 2027 and concluded that the Group was a going concern.

Downside scenarios were modelled including the impacts of a combination of the principal risks occurring including reducing sales and margins for the two key businesses. A reverse stress test was also separately modelled before considering any mitigating actions with the outcome being that the levels required to exhaust going concern would be considered remote. Mitigating actions available include existing cash resources, level of discretionary spend and ability to utilise the RCF.

Responsibility statement of the directors in respect of the condensed interim financial statements

We confirm that to the best of our knowledge:

• the condensed set of financial statements for the half year ended 30 June 2026 has been prepared in accordance with UK adopted IAS 34 Interim Financial Reporting;
• the interim management report includes a fair review of the information required by:

o DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the 2026 financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

Matthew Moulding Damian Sanders

Chief Executive Officer Chief Financial Officer

9 September 2026 9 September 2026

Interim condensed consolidated statement of comprehensive income for the six months ended 30 June 2026

Other comprehensive (expense)/income:

Items that may be subsequently reclassified to profit or loss:

Earnings before interest, taxation, depreciation, amortisation, adjusted items and share-based payment charges (Adjusted EBITDA)

Interim condensed consolidated statement of financial position as at 30 June 2026

Interim condensed consolidated statement of changes in equity for the six months ended 30 June 2026

Interim condensed consolidated statement of cash flows for the six months ended 30 June 2026

Notes to the interim condensed consolidated financial statements

• Basis of preparation
• General information

THG PLC (company number 06539496) is a public company limited by shares and incorporated in England and Wales. It has a premium listing on the London Stock Exchange and is the holding company of the Group. The address of its registered office is Icon 1, 7-9 Sunbank Lane, Ringway, Altrincham, Manchester, WA15 0AF. The Company is the parent and the ultimate parent of the Group, the financial statements comprises the results of the Company and its subsidiaries ("the Group").

The interim condensed consolidated financial statements of the Group for the six months ending 30 June 2026 were authorised for issue in accordance with a resolution of the directors on 9 September 2026.

The annual financial statements for the year ended 31 December 2026 of the Group will be prepared in accordance with UK adopted IFRSs.

Basis of preparation

The interim condensed consolidated financial statements for the six months ended 30 June 2026 have been prepared in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. The financial statements have been prepared on the historical cost basis, except for derivatives which are held at fair value. The Directors consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements of the Group.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual consolidated financial statements for the year ended 31 December 2025. As disclosed in note 1a, the annual financial statements of the Group will be prepared in accordance with UK adopted IFRSs.

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2025.

The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. There were no new standards, interpretations or amendments that became effective in the period that had a material impact on the group.

Going concern

The Group remains in a strong cash position following the demerger with cash and cash equivalents totalling £88.7m (H1 2025: £129.4m, 31 December 2025: £183.1m).

At 30 June 2026, the Group had a total of £150m in undrawn facilities.

Net debt before lease liabilities and after FX derivatives totalled £329.7m (H1 2025: net debt before lease liabilities £321.4m, 31 December 2025: £233.0m).

In making their assessment of going concern, the Directors reviewed financial projections until 30 September 2027.

Downside scenarios were modelled including the impacts of a combination of the principal risks occurring including reducing sales and margins for the two key businesses. A reverse stress test was also separately modelled before considering any mitigating actions with the outcome being that the levels required to exhaust going concern would be considered remote. Mitigating actions available include existing cash resources, level of discretionary spend and ability to utilise the RCF.

For these reasons, the Directors continue to adopt the going concern basis in preparing these condensed interim financial statements.

• Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group's accounting policies, management is required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. In preparing these interim financial statements, the significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty were the same as those applied to the Group's annual consolidated financial statements for the year ended 31 December 2025.

Segmental reporting and revenue

The Group's activities were divided into the following segments: THG Beauty and THG Nutrition.

The results of each business is reported to the Board of Directors and are treated as reportable operating segments. The following table describes the main activities for each reportable operating segment:

Central costs relate primarily to the PLC Board remuneration, professional services fees, Group finance, M&A, risk (insurance) and governance costs that are not recharged to the businesses as they principally relate to the operations of the PLC holding company.

The Chief Operating Decision Maker (CODM) is the executive Board of directors, who make the key operating decisions for the segment. The CODM receives daily financial information at the combined Group level, along with monthly information at a business level, and uses this information to allocate resources, make operating decisions and monitor the performance of each of the segments.

The measure of the Group's profit or loss used by THG's management team is Adjusted EBITDA comprising operating loss adjusted for interest, tax, depreciation, amortisation, shared-based payments and adjusted items. This is reconciled to the nearest IFRS measure (loss before tax) in the below table.

Below is an analysis of revenue by region (by destination):

Loss on disposal of discontinued and the exiting of loss-making categories

Prior period costs related to the disposal of two non-core THG Beauty brands and product offerings as part of the Group's strategic review of loss-making categories and territories. No such costs were incurred in H1 FY 2026.

Inventory provision following strategic review

A final inventory provision required for discontinued inventory following the previous strategic review. We do not expect these costs to recur.

One-off manufacturing operational costs

This includes one-off costs incurred in connection with the commissioning and ramp-up of a new manufacturing production line, together with non-recurring expenditure undertaken to support manufacturing capacity and operational continuity.

Transportation, delivery and fulfilment costs

The conflict in Iran has resulted in pressures across the international network and travel routes, with increased costs being experienced as the war continues, which are not fully passed on to customers. The Group continues to insulate the customer from the full impact of these rising costs, with the residual expense therefore being over and above those incurred through the normal course of business.

Commissioning - new facilities

The Group commissioned a new US warehouse during the period. Incremental costs relating to the exit and clearance of the legacy warehouse were incurred as part of the transition to the new site. Accordingly, these costs have been classified as adjusted items.

Other legal and professional costs

The Group incurs legal and professional costs that are non-recurring, one-off in nature and not related to trading activities. These costs which may include legal costs for one-off matters and other fees associated with investor activities, are presented as adjusted items. In H1 FY 2026, costs primarily related to one-off advisory projects. The prior year amount related to an irrecoverable customer debt following liquidation. Due to the exceptional and non-recurring nature of these items, they have been classified as adjusted items.

Restructuring costs

The Group continues to explore and implement corporate restructuring and evolve its internal operations where sustainable alternatives are identified. The costs incurred are attributable to employee-related severance as part of specific operational restructuring projects as efficiencies are implemented across the business. These projects, and the costs attached, are expected to be completed within a 12-month period.

Impairment of assets - THG Experience

In the prior period, an additional one-off impairment charge of £0.7m was recognised during the period for the THG Experience assets remaining within continuing operations that were previously impaired in 2024, following a further review of its carrying value. No such costs have been recognised in the current period.

Impact of property portfolio restructure

Consistent with the prior year, the Group continues to incur unavoidable costs relating to leased properties that were vacated following a Group review of properties held within its portfolio that are no longer in use. The costs relating to these sites are incurred over the remaining life of the lease and will continue to be classified as adjusted items.

Income tax

The Group calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings. The major components of income tax expense in the interim condensed consolidated statement of comprehensive income are:

Share-based payments

A total of 27,667,288 share options were issued in the period. The share options issued during the period are as follows:

• On 22 January 2026, 23,542,862 options were granted, followed by grants of 3,846,649 options on 1 March 2026 and 277,777 options on 8 May 2026, with all options vesting in three equal tranches; the first tranche vesting on the grant date and the second and third tranches vesting on 31 December 2026 and 31 December 2027 respectively.

Refer to the 2025 Group Annual Report and Accounts for more information regarding previous issued plans.

The following table shows the shares granted and outstanding at the beginning of the year and at half-year:

2026

Number of shares

IAS 36 states that an entity is required to assess at each reporting date whether there are any indications of impairment, with an impairment test itself being carried out if there are such indications. In assessing whether there are impairment triggers at the reporting date, management has taken into account economic performance including macroeconomic factors that have impacted the markets in which the Group operates. During the period, THG Nutrition delivered strong increases in margins. Consequently, management has concluded that there are no triggers or indicators of impairment. While THG Beauty reported strong revenue growth, it reported a decline in adjusted gross profit margin by 90bps. Reflecting this margin reduction, management has undertaken an impairment review for THG Beauty. A value in use assessment has been performed for the THG Beauty cash generating unit. A discounted cash flow has been prepared with the following assumptions

THG Beauty

Key assumptions

Forecasts are based on assumptions from the Board-approved budget with projections covering a five-year period. The key assumptions within the cash flow forecasts are the future revenue growth and EBITDA margin. The projections are based on the best estimate of future cash flows, taking into account externally available expectations. The discount rate and long-term growth rate are consistent with those applied in the impairment review performed at 31 December 2025, and as disclosed in note 10 of the Group's annual accounts.

Sensitivities

Management has performed sensitivity analysis across revenue growth rates, EBITDA margin, terminal growth rate and discount rates.

THG Beauty has historically acquired several businesses and therefore has a higher intangible asset position as a result of the recognition of brands, intellectual property and goodwill under IFRS 3: Business Combinations. On performing sensitivity analysis on the key assumptions, the model is not sensitive to reasonably possible changes in assumptions.

As a result of the impairment assessment performed, no impairment has been recognised in respect of THG Beauty.

Financial assets and liabilities

Assets as per balance sheet - held at fair value through OCI

Liabilities as per balance sheet - other financial liabilities at amortised cost

Financial instruments included within current assets and liabilities, excluding borrowings, are generally short-term in nature and accordingly their fair values approximate to their book values. Bank borrowings are initially recorded at fair value net of direct issue costs. There is no material difference between the fair value and the carrying value of the bank borrowings.

The derivative financial instruments designated as hedging instruments have been recognised at fair value through Other Comprehensive Income. Hedging instruments are valued based on significant observable inputs and have been classified at Level 2 hierarchy level in line with IFRS 13: Fair Value Measurement.

VAT tribunal - protein powders (contingent asset)

The Group has raised Error Correction Notices to HMRC regarding the VAT treatment of certain protein powder products. A favourable ruling could generate an estimated benefit in excess of £60m. However, under IAS 37, contingent assets may only be recognised when the inflow of economic benefits is virtually certain. As HMRC have not provided a conclusion, we have concluded this criteria is not met at 30 June 2026. No asset has therefore been recognised yet.

Net debt consists of loans and lease liabilities, less cash and cash equivalents. For the purposes of the Group's net debt calculation, loans that are denominated in foreign currency are translated at the effective hedged rate where applicable. A reconciliation to the most directly comparable IFRS measure is included below:

Dilapidations provisions relate to leased properties. Dilapidations provisions are made based on the best estimate of the likely committed cash outflow and discounted to net present value. Future costs are expected to be incurred over the term of the existing lease arrangements at the reporting date, which is a period of up to 20 years.

Onerous contracts provision includes unavoidable costs relating to the aborted implementation of a payroll ERP system and a technology tool, which was originally intended to enhance revenue generation and customer retention. The provision is expected to be utilised over 2 years.

Related Party Transactions

The Moulding Capital Limited Group ("Propco") is wholly owned by the Group's CEO. The Propco Group owns property assets occupied and utilised by THG and its operating businesses.

Leases with Propco Group

The amounts recognised on the Group's balance sheet and statement of comprehensive income in relation to the leases with Propco for continuing operations in the period are as follows:

The table below gives further detail around the leases in place for continuing operations H1 2026:

The number of leased properties will reduce to 9 in H2 2026 following the early exit of the Great John Street Hotel lease in July 2026.

The following table sets out amounts payable to related parties which include balances in relation to lease agreements:

Amounts owed to Aghoco 1442 Limited[20] and Allenby Square Limited (subsidiaries within the Propco Group) at 31 December 2025 have been settled in the period.

Prior to 30 October 2025, 'THG Ingenuity' was used to describe the The Hut.com Limited group. On 30 October 2025, The Hut.com Limited changed its legal name to FIC Shareco Limited, a company incorporated in the UK. From 30 October 2025, 'THG Ingenuity' describes the FIC Shareco Limited group.

Following the demerger on 2 January 2025, THG Ingenuity is no longer part of the THG PLC Group, however by virtue of the CEO's shareholding and control it is considered a related party.

THG PLC has a long-term service contract in place comprising; platform infrastructure and technology services, warehouse, fulfilment and courier services, and marketing and content creation.

Transactions with THG Ingenuity

The amounts recognised on the Group's balance sheet and in the income statement in relation to the contract with THG Ingenuity in the period are as follows:

During the period, THG Ingenuity received cash for the sale of goods on behalf of the Group totalling £9.0m (2025: £41.4m), under the agreement in place this was remitted back to the Group.

Amounts included within trade and other payables at 31 December 2025 totalling £20.9m in respect of the final demerger payment were settled in the period for £20.2m (2025: £9.8m).

Subleases with THG Ingenuity

In addition, subleases were put in place following the demerger. The amounts recognised on the Group's balance sheet and in the income statement in relation to the leases with THG Ingenuity in the period are as follows:

The table below gives further detail around the leases in place for continuing operations H1 2026:

The following table sets out amounts outstanding excluding lease liabilities at the balance sheet date:

The receivables are unsecured in nature, and unless otherwise stated, bear no interest. No guarantees have been given or received, and no provisions have been made for doubtful debts in respect of the amounts owed by related parties. The payables to related parties are from purchase transactions for services due one month after the date of purchase. The payables from purchase transactions are unsecured and bear no interest.

Events after the reporting period

A capital reduction involving the cancellation of the Company's share premium account and capital redemption reserve was approved by shareholders at the Annual General Meeting (AGM) on 24 June 2026. Following confirmation by the High Court of Justice and subsequent registration by the Registrar of Companies, the capital reduction became effective on 7 August 2026. The effect is an increase in retained earnings of £2.2bn, and a decrease in the share premium account of £2.2bn and the capital redemption reserve of £0.5m. The capital reduction does not involve any distribution or payment of capital by the Company.

Principal risks and uncertainties

The Board considers that the principal risks and uncertainties which could impact the Group over the remaining six months of the financial year to 31 December 2026 to be unchanged from those set out in the Annual Report and Accounts for the year to 31 December 2025.

The applicable risks are summarised as follows:

• Cyber security and data privacy;
• THG Ingenuity reliance;
• Culture;
• Talent;
• Customer needs;
• Infrastructure, supply chain and critical partners;
• Climate change, environmental and social responsibility;
• Health and safety;
• Legal and regulatory compliance;
• Product safety and quality;
• Geopolitical and economic uncertainty; and
• Liquidity and funding.

These are set out in detail from page 62 in the Group's Annual Report and Accounts for the year to 31 December 2025, a copy of which is available on the Group's website, www.thg.com.

INDEPENDENT REVIEW REPORT TO THG PLC

Conclusion

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 which comprises the Interim condensed consolidated statement of comprehensive income, the Interim condensed consolidated statement of financial position, Interim condensed consolidated statement of changes in equity, Interim condensed statement of cash flows, and the related explanatory notes. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Basis for Conclusion

Conclusions Relating to Going Concern

Responsibilities of the directors

Auditor's Responsibilities for the review of the financial information

Use of our report

Ernst & Young LLP

Manchester

[1] When adjusted for the August 2025 disposal of Claremont Ingredients H1 2025.

[2] Consensus being revenue £1,802.2m, Adjusted EBITDA £101.7m https://www.thg.com/investor-relations/analyst-consensus. Cash flow consensus being £31.1m, unchanged from Q1 2026.

[3] Continuing CCY defined as constant currency basis adjusted for the exit of loss-making territories and the sale of Claremont Ingredients.

[4] As set out in the AGM Trading statement on 24 June 2026.

[5] Gross profit margin adjusted for amortisation and depreciation and adjusted items. See CFO Report for reconciliation.

[6] YoY defined as year-on-year growth.

[7] Gross profit adjusted for amortisation and depreciation and adjusted items. See CFO Report for reconciliation.

[8] The non-GAAP measure which is defined as earnings before interest, taxes, depreciation, amortisation, share-based payment and adjusting items. See CFO Report for reconciliation.

[9] Net debt excluding lease liabilities. See CFO Report for reconciliation.

[10] Including Myprotein licensed products.

[11] Market share gains source: Circana THG Total Market Share 04.01.2026 to 27.06.2026 vs04.01.2025 to 27.06.2025.

[12] TikTok UK Seller Centre, August 2026.

[13] Core brands and markets comprise of c.87% of Group revenue, excluding THG Nutrition Asia, own-brand beauty and retail beauty EU sales impacted by de-minimis duty charges (see more information below).

[14] On 1 July 2026, the EU removed its €150 de minimis customs duty exemption, moving to a flat rate charge of €3 per item category.

[15] The numbers in this report are subject to roundings throughout. This report includes a number of non-GAAP measures and alternative performance measures. Adjusted results are consistent with how business performance is measured internally and presented to aid comparability of performance. See more information within the reconciliations to statutory measures within this report.

[16]The H1 2025 lease liabilities and right-of-use asset have been restated following an adjustment to the incremental borrowing rates applied in the financial statements for the year ended 31 December 2025 that should also be applied in the six-month period to 30 June 2025. The restatement reduces lease liabilities by £16.5m and right-of-use assets by £16.5m. The correction has no impact on the Group's income statement, statement of comprehensive income, earnings per share, cash flows or net assets.

[17] This differs to the Cash flows relating to adjusted items within the cash flow statement which also includes accruals unwinding from previous periods.

[18] The H1 2025 lease liabilities and right-of-use asset have been restated following an adjustment to the incremental borrowing rates applied in the financial statements for the year ended 31 December 2025 that should also be applied in the six-month period to 30 June 2025. The restatement reduces lease liabilities by £16.5m and right-of-use assets by £16.5m. The correction has no impact on the Group's income statement, statement of comprehensive income, earnings per share, cash flows or net assets.

[19] The H1 2025 right-of-use asset disclosure has been restated from £28.7m to £10.7m to include, primarily, impairment charges recognised as at 30 June 2025 within the income statement but omitted from the disclosure note. This restatement has no impact on the income statement, net assets or statement of cash flow.

[20] Previously disclosed inaccurately at 31 December 2025 as Aghoco 1422 Limited.