THG PLC Reports Strongest Q1 Revenue Growth Since 2021, Reiterates Full-Year Guidance

THG Q1 2026: Strongest Start Since 2021, Guidance Intact

THG has kicked off 2026 with its best first-quarter growth performance since 2021. Group revenue came in at £393.1 million, up 4.6% on a reported basis and 7.0% at constant currency. Beauty accelerated, Nutrition stayed strong, and management kept full-year guidance unchanged alongside the strongest Q1 cash flow performance in three years.

The tone is confident: market share gains are cited on both sides of the Atlantic, new category pushes are adding margin, and the pipeline for Q2/Q3 looks busy. There are still watchpoints – whey prices, FX and the Asia reset – but the momentum is clear.

Key Q1 2026 Numbers at a Glance

Segment	Revenue (£m)	Reported YoY	Constant currency YoY
THG Beauty	233.3	+2.4%	+5.8%
THG Nutrition	159.8	+8.1%	+8.8%
Total revenue	393.1	+4.6%	+7.0%

Management notes two headwinds to that 7.0% constant currency growth: disposals and discontinued activities reduced growth by 150 bps (1.5 percentage points), and Middle East disruption trimmed a further c.30 bps. Currency was a drag, most notably in the US.

Beauty: Lookfantastic Outperforms, US Share Gains, K-Beauty Pops

Beauty’s constant currency growth of 5.8% marks an acceleration on H2 2025 (5.4%). In the UK, Lookfantastic outperformed the prestige market, with orders up 7% and growth in active customers. In the US, retail saw revenue growth and market share expansion.

Dermstore has become an early partner for Flex, letting customers use pre-tax HSA/FSA funds at checkout – a neat lever for affordability and higher average order values. On the brand side, K-Beauty more than doubled revenue year-on-year, with six new brands launched year-to-date. New listings like SkinCeuticals and MAC on Cult Beauty exceeded expectations.

Offline, the new Lookfantastic store in Bristol is outperforming the initial flagship, creating a useful halo for awareness and customer acquisition. Own brands are finding new doors too, with Ameliorate and ESPA securing fresh retail and spa listings, and manufacturing growing via strategic new business wins.

Nutrition: Broad-Based Growth, Margin-Accretive Mix, Big Retail Roll-Outs

Nutrition delivered 8.8% constant currency growth, or 12.1% excluding Asia where the business is pivoting to licensed local manufacturing and distribution (a strategic move that temporarily suppresses revenue but targets higher structural margins). Growth was broad-based across online and offline channels.

The category mix is working in THG’s favour. Expansion into higher-margin areas like activewear, creatine, hydration and collagen is helping offset record whey pricing. The core powder range has seen reformulations and strategic pricing, with a headline launch of MARS Impact Whey Protein.

Engagement is rising: c.15% of active customers bought activewear in the quarter, up 230 bps year-on-year, and orders that included activewear had average order values c.31% higher. Myprotein’s collaboration with Champion and the forthcoming launch in high-footfall Footasylum stores support that push beyond pure performance wear.

Licensing is scaling quickly. Myprotein’s licensed-out range saw >200% growth in retail units year-on-year, helped by Greencore food-on-the-go items and the expanded Müller range. The Jimmy’s Iced Coffee partnership now holds c.20% share of the UK protein coffee sub-category, underlining brand strength in adjacent aisles.

Offline distribution: Tesco, Kroger, GNC and Vitamin Shoppe

• Branded bays in Tesco nationwide, consolidating multiple categories for discovery and trial.
• Geographic expansion into Canada and Latin America via new distribution partners and marketplace presence.
• US push continues with a June launch into 1,200 Kroger stores, complementing existing listings at Walmart and Meijer.
• Deeper specialty coverage: GNC (four Clear Whey RTD SKUs in 1,500 stores) and Vitamin Shoppe (first-to-market Myprotein Gummies range).

Cash Flow and Guidance: A Firmer Base for the Year

THG reports its strongest Q1 cash flow in three years, backing a full-year free cash flow guide of £25 million to £50 million. Full-year 2026 guidance is reiterated, underpinned by continued share gains and pricing/product optimisation.

Management continues to monitor the Middle East. Affected regions were less than 1.5% of Group revenue in FY 2025 and are weighted to Beauty. That small exposure helped limit Q1 disruption to c.30 bps of growth.

Trend Check: Momentum vs 2025

The appendix tells the story. On a constant currency basis, Group growth has moved from 6.8% in H2 2025 to 7.0% in Q1 2026. Beauty has re-accelerated to 5.8% from 5.4% in H2 2025, while Nutrition remains robust at 8.8%.

On reported numbers, the Group is up 4.6% year-on-year in Q1 2026 versus a 2.0% decline for FY 2025. Currency is still a swing factor, particularly in the US, but the underlying trajectory is improving.

What Stands Out – and What to Watch

Positives

• Best Q1 growth since 2021, with both Beauty and Nutrition contributing.
• Beauty momentum is broad: UK outperformance at Lookfantastic, US share gains, strong K-Beauty, and improving own-brand and manufacturing traction.
• Nutrition’s mix is getting healthier, with higher-margin categories and licensing helping to cushion elevated whey prices.
• Offline distribution is scaling across grocers and specialists, which should broaden reach and reduce customer acquisition volatility.
• Strongest Q1 cash flow in three years and guidance reiterated – a confidence signal from management.

Watchpoints

• Whey costs are described as “record” – a persistent input headwind that requires continued pricing and mix management.
• Asia revenues are intentionally lower during the licensing transition; growth is expected to resume once annualised, but timing depends on execution.
• FX remains a drag, especially in the US – visible in the gap between reported and constant-currency growth.
• Disposals and discontinued activities shaved 150 bps off growth – the new perimeter should now provide cleaner comparatives, but it still dampened Q1 optics.
• Geopolitics: Middle East exposure is small (<1.5% of FY 2025 revenue), yet disruptions trimmed c.30 bps from growth this quarter.

Jargon Buster

• Constant currency (CCY): strips out FX moves to show underlying performance.
• bps: basis points; 100 bps = 1 percentage point.
• AOV: average order value; the average basket size per order.

My Take: A Cleaner Growth Story Taking Shape

This is a tidy update. The underlying engine is running better – Beauty is back to clear outperformance in the UK and gaining share in the US, while Nutrition is compounding through category mix, reformulation and retail reach. The blend of online scale, offline expansion and licensing looks more resilient than a pure-play D2C model.

Risks aren’t gone. Input costs, FX and the Asia reset will all need careful handling. But with Q1 coming in better than expected internally, cash flow improving, and growth levers stacking up into Q2/Q3 (Tesco bays, Kroger rollout, specialty expansion), maintaining full-year guidance feels justified. For now, it’s a constructive step forward for THG’s 2026 narrative.