THG revenues have risen year on year driven by strong performances in the beauty and nutrition categories, while its full-year profit guidance remains unchanged.
For the third quarter ending September 30, 2022 THG sales were up 2.1% to £518.6m, driven primarily by a 4.9% increase in beauty sales to £259.7m and a 2.9% growth in nutrition sales to £163.8m.
Sales on its THG Ingenuity platform increased 1.3% to £51.7m, but the sales were dragged down by weaker performances during the period from THG OnDemand, down 18.5% to £24.5m, and other products, which slipped 4.4% to £18.9m.
As a result of its third-quarter performance, THG said that its expected full-year profitability range to remain unchanged at between £100m and £130m.
THG said that consumer behaviour in the period “remained stable and consistent” – reflecting the resilience of the health and wellbeing categories – and noted it had experienced a “positive start” to Q4 trading.
The retailer also said that global stock levels were beginning to normalise, after the completion of “the global logistics roll-out program” and that all debt facilities were “covenant light”.
Chief executive and founder Matthew Moulding said: “Another strong quarter of delivery across our beauty and nutrition divisions has enabled market share growth in our key global territories.
“We remain committed to our strategy of supporting our customers around the globe through investment in price protection, without compromising on quality or choice. As commodity prices ease further, we remain well positioned to grow margins into 2023, whilst reducing pricing to consumers.
“This positions the group well in continuing to expand market share. As cost-of-living pressures rise, customers are continuing to prioritise beauty, health and wellness categories and, through investing in bringing them into and retaining them within the THG ecosystem, we are laying the foundations for our future growth.
“The fourth quarter has started positively, and we are well positioned from a logistics and supply perspective to meet the significant uplift in demand anticipated during the cyber period, whilst continuing to deliver a high-quality customer experience.
“I’m delighted to confirm the signing of the recently announced £156m of incremental capital from three long-standing lending partners on highly attractive terms. Given the current market environment, this is a strong endorsement of the group’s long-term business model, alongside the recently announced increased investment from Qatar Investment Authority.”
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