Breaking Down THG Plc Financial Health: Key Insights for Investors

From a Manchester start-up in 2004 with an initial investment of £500,000 to a global online beauty and nutrition group built through landmark buys such as Lookfantastic, Myprotein, Dermstore and Glossybox, THG plc's rise is marked by strategic M&A, vertical integration and heavy tech investment-culminating in the January 2025 demerger of its technology arm, THG Ingenuity, into a standalone private business and an October 2025 deal valuing Ingenuity at £750 million+ in which Google agreed to invest in a convertible instrument; today the listed company (LSE: THG)-a FTSE 250 constituent-has 1,390,694,730 voting shares outstanding (ordinary shares only), completed an October 2024 equity raise plan to shore up finances of approximately £75 million (with founder-CEO Matthew Moulding personally committing £10 million), returned to group revenue growth in Q2 2025 with THG Nutrition delivering a 3% revenue uptick in H1 2025, sold Claremont Ingredients for £103 million in August 2025 to streamline operations, and as of 15 December 2025 trades at £45.16 with a market capitalization of £630.26 million-a snapshot that sets the scene for how THG's mission, ownership, operational model and revenue streams work together to monetize owned brands, marketplaces, subscriptions and direct-to-consumer channels; dive into the details ahead.

THG Plc (THG.L): Intro

THG Plc (THG.L) is a UK-founded e-commerce and consumer brands group, built around beauty and nutrition businesses and formerly a large in-house technology and logistics platform (THG Ingenuity). Key facts and milestones:

• Founded in 2004 in Manchester by Matthew Moulding and John Gallemore with an initial investment of £500,000.
• Shifted from selling CDs/DVDs to e-commerce by acquiring online retailers from 2007 onward, building specialty verticals in beauty and nutrition.
• Major acquisitions that defined the group's profile included Zavvi (2009), Lookfantastic (2010), Myprotein (2011), Glossybox (2015), ESPA and Illamasqua (2017), Dermstore and Claremont Ingredients (2020).
• Listed on the London Stock Exchange in September 2020 in a float that valued the business at roughly £5.4 billion at IPO.
• In January 2025 the company demerged THG Ingenuity into a privately owned, stand‑alone technology & logistics business, refocusing THG on its core beauty and nutrition segments.

Business model - how THG makes money

• Owned consumer brands and direct-to-consumer e-commerce (Lookfantastic, Myprotein, Dermstore, ESPA, Illamasqua, Glossybox): product sales, subscriptions and cross-border online retail.
• Platform services (historically THG Ingenuity): SaaS-style e-commerce, digital marketing, fulfilment & logistics sold to third parties (post-2025 operated as a demerged private business).
• Third-party marketplace & wholesale channels: selective distribution and B2B sales of owned brands and partner products.
• Ingredient supply and manufacturing (Claremont Ingredients): B2B sales into food & nutrition supply chains.

Operational and scale indicators (select figures & context)

• Global multi-brand footprint across beauty and nutrition with key markets in the UK, EU and US.
• Omnichannel capabilities: proprietary e-commerce sites, subscription models (e.g., Glossybox), and fulfilment operations supporting cross-border shipping.
• Technology stack (historically provided by THG Ingenuity) supported digital storefronts, payments, marketing and logistics integrations for owned brands and external clients.

Ownership and governance highlights

• Major shareholder influence: founder Matthew Moulding has been a central figure with significant shareholdings and board roles since founding.
• Public company until structural changes and the 2025 demerger of Ingenuity changed the corporate grouping and operational focus.

Representative financial and corporate datapoints (select, headline)

Further reading: THG Plc: History, Ownership, Mission, How It Works & Makes Money

THG Plc (THG.L): History

• Voting shares outstanding (as of 31 Mar 2025): 1,390,694,730 - only ordinary shares carry voting rights.
• Exchange: London Stock Exchange; constituent of FTSE 250 Index.
• Oct 2024 recapitalisation: ~£75m via placement, subscription and retail offering; CEO Matthew Moulding underwriting £10m.
• Post-demerger structure: THG concentrates on beauty & nutrition; THG Ingenuity becomes private, with potential external strategic investors (e.g., Google instrument in Oct 2025).

• Focus: build and scale direct-to-consumer beauty and nutrition brands, leveraging data, vertical integration and global e-commerce distribution.
• Operational aim post-2025: allocate capital and management to brand growth while partnering with Ingenuity for technology services as an external supplier when needed.

• Brand ownership and product sales: manufacture or source beauty and nutrition products and sell direct-to-consumer via THG-branded and third-party sites.
• E-commerce operations: online storefronts, marketplaces and global logistics generate transaction and shipping revenue.
• Services (historically via Ingenuity): platform, technology and fulfilment services provided to external clients; after Jan 2025 these services operate from a separate private entity, with potential monetisation via commercial contracts and strategic partnerships.
• Capital structure actions (e.g., Oct 2024 raise) used to strengthen balance sheet, support brand investment and reduce leverage.

THG Plc (THG.L): Ownership Structure

• Mission: be a global leader in online retail, delivering high-quality beauty and nutrition products worldwide.
• Innovation: continuous investment in technology, proprietary e-commerce platform (INGENUITY) and fulfilment infrastructure.
• Sustainability: eco-friendly packaging, product sourcing and operational efficiencies to reduce environmental impact.
• Inclusivity: broad product ranges addressing diverse consumer needs and preferences.
• Customer focus: prioritises exceptional online service, loyalty programs and direct-to-consumer value.
• Culture: collaboration and entrepreneurship encouraged across teams.

• Direct-to-consumer (DTC) retail: proprietary brands (lookfantastic, Myprotein, Espa, etc.) - historically the largest revenue driver; company revenues have been in the low billions of GBP range in recent years.
• INGENUITY (e-commerce platform and fulfilment): B2B SaaS + fulfilment services sold to third parties; strategic growth area with higher-margin potential.
• Marketplace and other services: branded partner listings, advertising and ancillary services.

THG Plc (THG.L): Mission and Values

• Operating segments: THG runs two principal segments - THG Beauty and THG Nutrition - each managing a portfolio of direct-to-consumer brands and dedicated e‑commerce platforms.
• Vertically integrated model: THG combines product development, in‑house manufacturing and global distribution to retain control over product quality, speed to market and unit economics.
• Platform portfolio: Flagship platforms include Lookfantastic, Dermstore, Cult Beauty (beauty) and Myprotein (nutrition), plus numerous regional sites serving skincare, haircare, cosmetics and supplements.
• Technology & logistics: THG invests in proprietary e‑commerce technology, its "THG Ingenuity" tech stack and a network of automated fulfilment centres to support order flow, reduce lead times and improve conversion rates.
• Marketing & growth: The group leverages digital marketing, influencer and content partnerships, CRM and analytics to acquire and retain customers across markets.
• Acquisition strategy: THG pursues strategic brand and platform acquisitions to expand category reach, geographic presence and proprietary product lines.

• Segments: Beauty and Nutrition - balanced focus with Beauty typically representing the larger share of platform breadth and international retail partnerships, Nutrition anchored by the Myprotein brand as a global revenue driver.
• Brands & platforms: Owns and operates a multi‑brand portfolio spanning global and local sites to capture market niches and premium categories.
• Fulfilment footprint: Network of fulfilment centres and regional hubs enabling cross‑border sales and same/next‑day capabilities in key markets.

• Direct product sales: Revenue from proprietary brands sold through THG's own e‑commerce sites (higher margin due to vertical integration).
• Third‑party platform services: Licensing and service fees where THG's Ingenuity platform, fulfilment and digital marketing are provided to external brands and retailers.
• Wholesale and distribution: Sales to retailers and partners in select channels and markets, supplementing direct online revenue.
• Private label and manufacturing: Margin capture through in‑house manufacturing for THG brands and selected third‑party contracts.

• Vertical control: In‑house R&D, formulation and manufacturing shorten product development cycles and improve gross margin.
• Proprietary tech: Owning the e‑commerce stack lowers per‑order tech costs for THG's brands and creates an external revenue line via Ingenuity services.
• Customer data & marketing: First‑party customer data enables targeted CRM, higher retention and improved lifetime value (LTV).
• Scale & acquisitions: Acquired brands expand addressable market and spread fixed costs across more SKUs and customers.

• Reliance on digital marketing efficiency - CAC fluctuations materially affect profitability.
• Inventory and fulfilment complexity across many SKUs and markets increases working capital demands.
• Integration risk from acquisitions - realizing synergies depends on operational harmonisation and platform compatibility.

THG Plc (THG.L): How It Works

• Core revenue lines: owned-brand sales (e.g., Myprotein, Myvitamins, ESPA), third‑party retail on THG platforms, subscription services (Lookfantastic, Dermstore, Glossybox), marketplace and platform fees, and strategic retail/wholesale partnerships.
• Integrated value chain: product formulation and manufacturing, brand marketing, proprietary e-commerce tech (THG Ingenuity), global distribution and logistics, and post-sale CRM/subscription retention.

• Direct product sales - THG's owned brands (notably Myprotein and ESPA) sell nutrition, skincare, haircare and cosmetics via THG's global e-commerce sites and apps; owned brands typically deliver higher gross margin than third-party retail.
• Subscription services - platforms like Lookfantastic, Dermstore and Glossybox generate recurring revenue through box subscriptions, auto-replenishment programs and loyalty initiatives that increase lifetime value (LTV).
• Third‑party retail / marketplace - THG lists and retails many external brands on its platforms, collecting gross margin on sales and, in some arrangements, commission or platform fees.
• Platform & technology services - THG Ingenuity (its e-commerce tech and fulfilment offering) provides hosted storefronts, logistics and technology to third-party retailers and partners for fees and revenue share.
• Strategic partnerships and wholesale - distribution agreements and retail partnerships across the US, Europe and Asia generate incremental sales channels and expansion revenue for both owned and third-party ranges.

• Owned-brand margin uplift: THG controls branding, pricing and supply chain for owned labels (e.g., Myprotein), enabling higher gross margins and markdown control versus pure retailing.
• Subscription & retention: recurring subscription revenue reduces CAC payback periods and increases average order frequency and customer lifetime value.
• Marketplace / third-party volume: listing external brands increases assortment and traffic without full inventory risk in some cases, generating commission and advertising revenue.
• Platform-as-a-service (Ingenuity): recurring tech and fulfillment contracts provide lower‑variance revenue streams and scale leverage as partners onboard.
• Cross-border scale: centralized manufacturing and distributed logistics allow THG to convert marketing traffic into global sales with incremental margin after fixed-cost absorption.

• Promotional funnels and subscription offers on Lookfantastic/Dermstore to convert first-time buyers into repeat purchasers.
• Private-label product launches and exclusives under Myprotein/Myvitamins to expand higher-margin owned lines.
• Marketplace growth and partner onboarding to broaden assortment and capture platform fees.
• Retail partnerships in the US, Europe and Asia to access offline channels and complementary audiences.

THG Plc (THG.L): How It Makes Money

• Retail brands (owned and partner brands): direct online sales of beauty and nutrition products across global channels.
• Platform & technology services: order management, digital marketing and logistics capabilities sold to third parties (post‑demerger activity is more focused and selective).
• Wholesale & B2B: supply to retailers, distributors, and private label contracts (reduced after portfolio streamlining).
• Licensing & partnerships: brand licensing and strategic collaborations to expand market reach.

• New market entries and geographic expansion for nutrition brands (supported the 3% H1 2025 growth).
• Higher conversion from owned brands and improved unit economics after refocusing away from non‑core food & beverage operations.
• Selective monetization of assets (Claremont sale) and reinvestment into growth categories.
• Strategic partnerships to amplify distribution and marketing reach.