THG has posted an increase in profits for the full year and maintained its profit guidance despite a slip in sales driven by “action to discontinue loss making categories”.


THG says the UK was its key growth market in 2023

Ecommerce giant THG, which owns Look Fantastic and MyProtein, posted group revenue of £2.05bn, down 8.7% year on year and a drop of 8.4% on a constant currency basis.

Adjusted EBITDA for the year was up 78% year on year to reach £114.1m, up from £64.1m in 2022.

THG said that despite international sales contributing to 54.2% of its group sales, the UK was its key growth market during the period.

In THG’s beauty division, the retail giant said its active customers have more than doubled since 2019 to reach a total of 8.5 million, while brand awareness “continues to build” as the group gained 3.3 million new app downloads during the year.

With an eye to THG’s nutrition arm, the retailer said there remains “a significant opportunity” to grow its licensed product base and scale its brand sales through partnerships with grocery giants and food and drink brands moving forward.

The group said revenue trends at the start of the 2024 financial year “continue to improve” and its medium-term guidance remains “unchanged”.

THG chief executive Matthew Moulding said: “In 2023, we made material progress against our strategic priorities, delivering significant profit growth following the support for our consumers through the cost-of-living crisis in 2022. This focus led to the group delivering record EBITDA after cash-adjusting items in 2023, higher than at the peak of the pandemic.

“Having completed our recent infrastructure investment programme, the group is now delivering operating leverage. Our fulfilment network is becoming increasingly optimised through a combination of robotics automation, AI and the onboarding of new Ingenuity clients utilising existing capacity.   

“The return to group revenue growth in Q4 was especially pleasing, and this momentum has continued into 2024.”