THG, the owner of Myprotein, has upgraded its full-year adjusted EBITDA expectation to £103 million, ahead of market consensus, after reporting profits "exceeding expectations" in the third quarter. The group's latest trading update showed 0.9% year-on-year revenue growth to £408.8 million in the three months to 30 September.
The increase was predominantly fuelled by a 3.7% year-on-year rise in revenue to £152.4 million for the group's nutrition division, THG Nutrition. The company said it has benefitted from the ongoing decline in whey protein prices throughout September and early October, following a period where rising demand and constrained supply had driven costs upwards in recent years.
Whey prices and raw material contracts
Whey protein, originally a by-product of cheesemaking, is widely used in food products to support muscle building and maintenance. The stronger-than-anticipated growth led THG to revise its full-year earnings before interest, tax, depreciation and amortisation (EBITDA) to £103 million for the period.
The group said it had locked in long-term contracts for essential raw materials including creatine, amino acids, milk proteins, collagen and vegan proteins at "historically" low prices in recent months, which it said will help protect against inflationary pressures through year-end and into 2027.
Myprotein partnerships and rewards
THG added that Myprotein continued to expand its partnership portfolio both domestically and internationally in the three months to 30 September, securing deals with doughnut company and coffeehouse chain Krispy Kreme, Caffè Nero and Iceland. The third quarter of this year also witnessed the introduction of Myprotein Rewards in the UK, allowing customers to accumulate points on their purchases and designed to boost repeat buying while deepening customer loyalty.
THG, which also operates the Cult Beauty and LookFantastic brands, indicated revenue growth is anticipated to gain momentum in the final quarter of this year, bolstered by the timing of dispatches across its THG Beauty division for advent and manufacturing.
THG Beauty performance and CEO comment
The company's THG Beauty division recorded a 0.7% decline in its year-on-year revenue to £256.4 million for the quarter. However, the group noted that advent products have helped to drive revenue and product growth, with its LookFantastic Fragrance advent calendar selling out within a single day.
The firm additionally stated THG Beauty's loyalty schemes surpassed 3.9 million members, facilitating stronger customer engagement and repeat purchases. THG chief executive Matthew Moulding said: "Following a particularly strong first half of 2026, I'm pleased to report that our momentum has continued through Q3, with profitability exceeding our expectations."
"This has enabled us to upgrade our full-year adjusted EBITDA expectation to £103 million, ahead of market consensus." He noted the three months to September 30 had delivered "significant" strategic progress with Myprotein's several new partnerships, expanding the brand's reach both domestically and internationally.
Mr Moulding said: "Q4 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 Q4." THG shares surged 16.3% to 32p on Thursday afternoon, reaching their highest level in a month.
