THG Group is back to revenue growth in its latest quarter with the company saying in an AGM statement on Wednesday that the second quarter “has been much improved across both Beauty and Nutrition”. The group returned to constant currency (CCY) revenue growth, “underpinned by a strong June exit rate supporting unchanged FY 2025 guidance”.
The revenue growth is largely due to the Nutrition business being in positive territory as Beauty is still in decline. But its Beauty unit is still seeing significant progress.
In fact, while its CCY revenue dropped 9.8% in Q1, it’s currently running down only 2%-3% for the second quarter.
Beauty retail, which comprises the vast majority of the Beauty business, has “traded resiliently” with growth in the UK (the largest territory) at its highest rate since Q1 2024, “supporting market share gains”. Its decision to withdraw from lower-margin Asia and Europe territories annualises in Q3, “thereby neutralising the year-on-year revenue drag effect from that point onwards”.
That said, Beauty own-brand revenue has been held back in the quarter due to timing differences of key customer orders which are expected to reverse in H2.
THG added that while its direct exposure to tariffs is expected to be less than £1 million before mitigating actions, “we continue to monitor the changes to US trade policy and reciprocal actions for an adverse impact on raw material supply chains and US consumer sentiment”.
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