THG Shares Surge as Company Returns to Profit with TikTok Shop Boost
Shares in THG, the Manchester-based beauty and nutrition retailer, experienced a significant surge on Thursday following the company's announcement of a return to profitability. The e-commerce giant reported a profit after tax of £54.1 million for the year 2025, marking a dramatic reversal from the substantial loss of £326 million recorded in the previous year.
TikTok Shop Drives Remarkable Sales Growth
A key driver behind this impressive turnaround has been the explosive growth of THG's presence on TikTok Shop. Sales on the popular social media platform more than doubled compared to 2024, largely propelled by the success of the online beauty store Lookfantastic. This brand has now established itself as the top-selling multi-brand beauty retailer on TikTok Shop, showcasing the platform's powerful influence on consumer purchasing behavior.
Strategic Moves and Brand Performance
The company's financial recovery was further bolstered by a strategic sale, securing £103 million from the divestment of its ingredients business, Claremont, in August. Additionally, THG Nutrition, a core division, demonstrated robust performance with increasing global awareness of its flagship bodybuilding supplement, Myprotein. Products from this brand are now stocked in over 40,000 stores worldwide, supported by new licensing partnerships with global confectionery giant Mars.
Looking ahead, THG is forecasting mid-to-high single-digit revenue growth for its nutrition division, alongside strong underlying growth in beauty product sales. The company also stands to potentially gain a windfall of up to £78 million if it succeeds in a claim with HMRC regarding the VAT treatment of its protein powder products.
Leadership and Market Response
Chief Executive Matt Moulding described the past year as a "coming of age" moment for THG, highlighting accelerating momentum, strategic actions, and validation of the company's long-term vision. He emphasized efforts to simplify the corporate structure, focus on key territories and brands, and strengthen financial foundations.
In early trading on Thursday, THG shares rose by 8.3 percent to 34.1 pence, reflecting strong investor confidence. It is noteworthy that THG plc was the former owner of City AM until its Ingenuity division separated from the wider group at the beginning of 2025.
