THG targets growth in beauty and nutrition post Ingenuity demerger

After completion of THG Ingenuity demerger, THG, a group comprising THG Beauty and THG Nutrition, reported revenue including Ingenuity of 1.9 billion pounds, up 1.1 percent for FY24. For the fourth quarter, THG revenue declined 2.6 percent to 552.4 million pounds.

During the second half, the company continued to see improving underlying trends within nutrition particularly in the UK, alongside promotional discipline supporting increased order profitability and margin expansion in beauty. Coupled with a strong fourth quarter for Ingenuity, FY24 adjusted EBITDA is expected to be in-line with the consensus range.

Commenting on the trading update, Matthew Moulding, CEO of THG said: "I'm impressed by the group's agility and resilience during a year of significant change for THG, ranging from the demerger of our Ingenuity business, to the sale or discontinuation of some non-core business units, and a major global rebrand of Myprotein in nutrition.”

"Our beauty business had a standout year, underpinned by strong performances in the UK and US. The continued success of our customer loyalty and reward program, and the opening of our first-ever Lookfantastic physical store, further cement our leadership position in the global Beauty market."

THG expects to deliver mid-single digit revenue growth in FY25, given continued confidence in prestige beauty demand across key markets, and a return to growth in nutrition, evidenced by an improved start to the year across online and offline channels.

Over the medium term, the company said, revenue growth of mid to high-single digit is anticipated, with adjusted EBITDA margins consistent with historical levels for beauty and nutrition, and significantly improved free cash flow.