Source: Sharecast
Updating on trading, THG said total revenues rose by 0.9%, or by 1.5% on a continuing constant currency basis, to £408.8m in the three months to 30 September. In the year to quarter end, adjusted earnings before interest, tax, depreciation and amortisation were up 50% at £100.6m
Founder and chief executive Matthew Moulding said the strong momentum seen in the first half had continued into the third quarter, with profitability exceeding expectations.
Further supporting the performance was a "significant" correction in whey commodity pricing, a key ingredient for THG's nutrition division.
As a result, the firm - which owns beauty platforms Lookfantastic and Cult Beauty as well as sports nutrition brand Myprotein - lifted its full-year guidance for adjusted EBITDA to £103m. Market consensus had been for £101.7m adjusted EBITDA on annual revenues of £1.8bn.
As at 1130 BST, the stock had rocketed 18% at 32.58p.
Moulding said: "Alongside disciplined working capital management, we remain on track to deliver our first year of positive free cashflow since IPO, with expectations of generating £25m to £35m in the 2026 full year.
"The fourth quarter is traditionally our busiest and most cash generative quarter, and we enter this important trading period with confidence. With strong operational momentum, improving profitability and continued strategic progress across both divisions, we expect to deliver an acceleration in group revenue in the fourth quarter."
Manchester-based THG, then called The Hut Group, debuted on the London Stock Exchange in 2020 amid much fanfare. But within a year the stock had tumbled, as investors grappled with the company's unusual governance arrangements and complicated structure. In response, Moulding stepped down as chair and technology services unit Ingenuity, THG's biggest division, was spun out.
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