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THG has seen overall sales “continue to strengthen” in its first quarter, as group revenues rose by 4.5% to £455m, with progression made in each of the last five consecutive quarters.Its group sales were largely boosted by a “standout performance” in THG Beauty, where sales soared by 11.1% to £267.6m over the period.
This followed targeted changes to geographic strategy through 2023, focusing on more profitable customers and territories closest to the group’s global distribution hubs. Performance in the UK, which accounts for over half of online Beauty revenues, was “notably strong”.
THG Nutrition revenues fell by 5.8%, as the division was “held back” by a 16% devaluation of the Japanese Yen YoY (15% of THG Nutrition revenues), as well as “expected” availability gaps amid its Myprotein rebrand.
Elsewhere, total THG Ingenuity revenues were down by 4.9%, after external revenues rose by 5.9%, but internal revenue fell by 8%.
Matthew Moulding, CEO of THG, said: “Following the Group’s return to revenue growth in Q4 2023, it’s pleasing to report an acceleration in Q1, which is testament to the hard work and dedication of our people, who’ve remained focused on the task in hand despite the tough macro-economic backdrop.
“It’s also clear that the accelerated infrastructure investments made during 2019-2022, specifically into our fulfilment network and tech capabilities, are playing a significant part in delivering competitive advantage. With this major capex program behind us, these investments will continue delivering meaningful savings, which accelerate further as new Ingenuity partners are onboarded.”
“The Q1 performance of our largest business THG Beauty, is especially encouraging. The operating model changes made throughout 2023, including focusing on more profitable territories and customers, temporarily impacted growth for much of last year, however, since Q4, we are seeing tangible benefits from these actions. This is reflected in THG Beauty’s loyalty membership reaching 2.3m people at the end of Q1, less than two years after launch.”
