THG welcomes resilient Q3 and maintains FY guidance 

THG has welcomed a “resilient” Q3 as revenues grew by 2.1% in the quarter ended 30 September, while THG Beauty and THG Nutrition reported growth of 4.9% and 2.9%, respectively.

It comes as consumer behaviour during the third quarter remained “stable and consistent” despite current economic uncertainties, according to the group, reflecting the “resilience” of beauty, health and wellness.

Over the period, THG reported stable Average Order Values (AOVs), repeat rates in line with the first half, and a growth in new customers acquired through apps, which continued to drive higher AOVs and order frequency.

The group also noted stock levels are normalising following the recent completion of a global logistics roll-out program, resulting in a “steady unwind” of the working capital investment it has made in the last two years. 

Meanwhile, its year-to-date revenue growth of 8.8% is in line with expectations, supporting its FY22 revenue growth guidance of 10.0% to 15.0%, which remains unchanged. Following its latest results, the group has also maintained an adjusted EBITDA guidance of between £100m to £130m.

Matthew Moulding, CEO, said: “Another strong quarter of delivery across our Beauty and Nutrition divisions has enabled market share growth in our key global territories. We remain committed to our strategy of supporting our customers around the globe  through investment in price protection, without compromising on quality or choice. As commodity prices ease further, we remain well positioned to grow margins into 2023, whilst reducing pricing to consumers. 

“This positions the group well in continuing to expand market share. As cost of living pressures rise, customers are continuing to prioritise beauty, health and wellness categories and, through investing in bringing them into and retaining them within the THG ecosystem, we are laying the foundations for our future growth.”

He added: “The fourth quarter has started positively, and we are well positioned from a logistics and supply perspective to meet the significant uplift in demand anticipated during the cyber period, whilst continuing to deliver a high quality customer experience. 

“I’m delighted to confirm the signing of the recently announced £156 million of incremental capital from three long-standing lending partners on highly attractive terms. Given the current market environment, this is a strong  endorsement of the group’s long-term business model, alongside the recently announced increased investment from Qatar Investment Authority.”