THG shares up as firm returns to profit with TikTok Shop growth

North West beauty and nutrition retailer saw TikTok Shop sales more than double

THG shares surged on Thursday after the e-commerce company swung back to profit, with pre-tax earnings surpassing market expectations.

The Manchester beauty and nutrition retailer reported profit after tax of £54.1m for 2025, reversing a loss of £326m the previous year, boosted by securing £103m from the sale of ingredients business Claremont in August.

TikTok Shop proved a key driver of the company’s growth, with sales on the platform more than doubling compared with 2024 after online beauty store Lookfantastic became the top-selling multi-brand beauty retailer on the social media platform.

Meanwhile, THG Nutrition’s sales growth was driven by increasing awareness of bodybuilding supplement Myprotein, with products now stocked in over 40,000 stores globally, and new licensing partnerships with global confectionery brand Mars.

The London-listed business is forecasting mid-to-high single digit revenue growth in its nutrition division with “strong underlying growth” in sales of beauty products, as reported by City AM.

The company could be in line for a windfall of as much as £78m if it wins a claim with HMRC over the VAT treatment of its protein powder.

Chief executive Matt Moulding said: “Our 21st year in business has been a ‘coming of age’ moment: A year of accelerating momentum, marked by a return to continuing CCY revenue growth, decisive strategic actions, and a clear validation of our long-term vision.

“We have simplified our structure, sharpened our focus on our key territories and brands, and strengthened our financial foundations.”

THG shares rose 8.3 per cent to 34.1p in the early moments of trading on Thursday. THG plc was the owner of City AM until its Ingenuity division separated from the wider group at the beginning of 2025.