THG, which owns brands including Lookfantastic, Cult Beauty and MyProtein, has posted a steady rise in revenue as it maintained its profit guidance for the year ahead.
In the three months to September 30, THG reported net sales of £466.5m, a year-on-year change of -4.4%, which the company said was its ”best quarterly revenue performance in the last year”.
The retailer said the global de-stocking on its beauty manufacturing business had eased, supporting a return to growth of 1.7% for THG Beauty in September.
THG’s nutritional arm MyProtein posted record adjusted EBITDA for the third quarter, driven by the rebrand launch and the investment in pricing strategy made during peak inflation.
The retailer said its “revenue, adjusted EBITDA and cash generation guidance remains unchanged” for the full year 2023.
THG chief executive Matt Moulding said: “The momentum with which we exited Q3 was especially pleasing, with the group returning to positive constant currency revenue growth of +3.2% in September, driven by a strong performance across our beauty division.
“We remain focused on restoring margins to pre-inflation levels while continuing to focus on cash generation. This is reflected in a best-ever Q3 profit performance from our Nutrition division. Our cash discipline has been excellent, reflected in delivering positive free cash flow of £5m, despite making £140m of capex investments, over the last 12-month period. The steps we have taken will further underpin the future cash generation of the group.
“Both our operations and inventory are well positioned ahead of peak trading, with the benefits of our investment in UK and US automated fulfilment centres enhancing the customer proposition through accelerated delivery times, positively influencing customer contact rates and overall satisfaction.
“The group is exceptionally well invested with a strong balance sheet, with each division well positioned to grow market share in any market conditions.”
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