For the three months to 31 March 2024, THG Nutrition’s sales fell by 9% to £150.8m, reducing THG’s total revenue to £459.9m, an increase of 2% compared to the previous year. % decrease.
In contrast, THG Beauty fared well, with sales up 9.3% year-on-year to £267.6m, while the group’s external division, THG Ingenuity, saw sales rise 4.1% to £37m.
THG said the UK beauty industry was performing “remarkably well” and “outperforming the beauty industry as a whole”, with app participation growing to 24% of online revenue and “particularly UK participation at 35%”. Strong,” he said.
The group’s beauty business also further increased its share of the overall UK luxury beauty market, although active customer numbers fell by 2.8% year-on-year.
Despite weak sales, THG said its Myprotein brand “remains the fastest growing sports nutrition brand across UK retailers”, with sales in more than 1,000 stores in the first quarter. He said he has expanded distribution.
THG said sales growth in the first quarter was driven by the approximately 16% depreciation of the Japanese yen, which accounts for 15% of the brand’s total sales, and “expected availability gaps as product lines transition to new brands.” ” was suppressed.
The company said the continued risk of a devaluation of the Japanese yen will be “addressed through the ramp-up of local manufacturing and licensing agreements” in the second half of this year.
THG also said it began local manufacturing in India in the first half of this year, allowing it to “tailor its products more quickly to local market needs.”
The company stated that its full-year and medium-term outlook for 2024 “remains unchanged,” and that it “continues to focus on increasing revenue, improving profit margins, and generating cash.”
THG said it will continue to monitor developments in the Middle East, as Israel accounts for approximately 1% of its total nutrition-related sales.
CEO Matthew Molding said: “We are pleased to report an acceleration in the first quarter, following the Group’s return to revenue growth in the fourth quarter of 2023. “This is a testament to the hard work that our employees have done and remains focused on the task at hand despite the challenges.” Severe macroeconomic background.
“It is also clear that accelerated infrastructure investment from 2019 to 2022, particularly our fulfillment network and technology capabilities, will play a key role in providing us with a competitive advantage. With our investment program, these investments continue to deliver meaningful savings, and the savings will accelerate as new Ingenuity partners join us.
“The first quarter performance of THG Beauty, our largest business, is particularly encouraging. Changes to our operating model throughout 2023, including a focus on more profitable geographies and customers, are a significant improvement over last year. However, since the fourth quarter, we have started to see tangible benefits from these efforts. As of the end of the first quarter, the number of users reached 2.3 million.
“The Beauty division achieved double-digit growth in the quarter, driven by a more efficient cost base and higher profitability per order, driven by a high quality and loyal customer base.
“Ingenuity has shifted its focus to larger multi-service partners and is now also seeing the benefits of changing its model. External revenue posted solid quarterly growth of +5.9%. , supported by +26.3% growth in monthly recurring revenue.
“Response to Myprotein’s rebranding has been excellent. These changes will naturally impact short-term revenue as new and old branded products are replaced, but we have received great feedback from both online consumers and offline retail partners. The strong positive response confirms our confidence once full product availability is restored.”
