THG, the online retail and tech company, has reported robust third-quarter results, with group revenue increasing by 2.1% compared to the previous year. The Beauty, Nutrition, and Ingenuity divisions were the main drivers of this growth, experiencing a 3.8% increase in revenue in the three months leading up to September. This strong performance has propelled THG’s overall revenue to £518.6 million, marking a significant increase of over 37% in the past two years.
Among the group’s revenue figures, THG Beauty stood out with an impressive growth rate of 4.9%, reaching £259.7 million. This represents a remarkable increase of 64.9% compared to two years ago. Ingenuity also demonstrated positive growth, with a 1.3% increase amounting to £51.7 million, reflecting a jump of 45.9% over the past two years. Notably, Ingenuity’s Commerce revenue increased by 5.9% to £12.3 million, showcasing a substantial increase of 144.5% compared to two years ago.
THG attributes the success of its Beauty, Nutrition, and Ingenuity divisions to its strategic market positioning and ability to gain market share. The company also noted that consumer behavior remained stable and consistent during the third quarter, underscoring the resilience of the beauty, health, and wellness categories. THG witnessed stable average order values (AOVs) and repeat rates, and the growth in new customers acquired through its apps contributed to higher AOVs and order frequency compared to non-app sales.
In addition to its strong Q3 results, THG announced the repositioning of its third-party e-commerce offering, THG Ingenuity, under the leadership of CEO Vivek Ganotra. The division will now prioritize larger clients with higher contract values, leveraging THG’s proprietary technology platform and end-to-end proposition. THG Ingenuity has already witnessed a robust and growing pipeline of opportunities in this segment, while also expanding its offerings to existing clients.
Looking ahead, THG is optimistic about its performance in Q4 and anticipates an acceleration of momentum as it enters its peak trading period. The company has confirmed the terms of its recently signed £156 million banking facility and maintained its full-year adjusted EBITDA guidance, which falls within the range of £100 million to £130 million. THG CEO Matthew Moulding emphasized the company’s commitment to supporting customers globally through investment in price protection, without compromising quality and choice. He also highlighted THG’s ability to grow margins and market share as commodity prices ease and customer demand for beauty, health, and wellness categories continue to rise.
In conclusion, THG’s Q3 results underscore its impressive performance and growth in key divisions. With a strategic focus on larger clients, alongside continued investments in technology and innovation, THG is well-positioned to meet customer demands and expand its market share in the future.
Useful Links:
1. THG Official Website
2. THG on Reuters
