THG boosted by rise in beauty sales
THG, the owner of brands such as Look Fantastic and ESPA, has posted a fall in revenue for 2024 after a year of major restructuring.
In the 12 months to 31 December, revenue declined by 5% to £1.94 billion, although the health and beauty group said it was confident of meeting its expectations for 2025.
The group benefited from a strong performance from its beauty division in 2024 where revenue increased by 3.3% at actual exchange rates following healthy demand for skincare products and fragrances.
However, THG Nutrition revenue declined by 11.9% which the group attributed to a one-off reduction in ASPs driven by elevated online promotional activity to clear legacy branded stock during a rebrand.
Never Miss a Retail Update!Earlier this year, the group demerged its technology division THG Ingenuity as it looked to simplify its business model. It has also recently rejected a bid for its Myprotein business from acquisition vehicle, Selkirk Group.
Matthew Moulding, chief executive of THG, said: “Both our businesses have undertaken extensive model changes over the past 24 months.
“Beauty has focused on more profitable markets and building loyalty schemes, while Myprotein has pressed ahead in undertaking a successful rebrand, underpinning rapid growth across global offline retail and licensing.
“In the first quarter of this year, THG Beauty was up against a comparative period including an early Easter which is a key trading event, and an extra day’s trading.
“However, in its home UK and US markets, Beauty retail is trading resiliently, with a strong selection of new brand launches planned throughout the year. It’s also been especially pleasing to see Nutrition momentum improving throughout the quarter with February and March back in growth.
“With a capex light and efficient cost base, we are well positioned to return to sustainable growth and cash generation, whilst developing market share.”
