THG maintains full-year outlook as it returns to revenue growth

17th October 2023

THG has kept its annual revenue and profit outlook unchanged after posting a steady rise in revenue growth.

The business, which owns brands including Lookfantastic, Cult Beauty and MyProtein said the impact of global destocking on its beauty manufacturing business has eased after reporting a 4.4% drop in third-quarter revenue.

The group said it returned to positive constant currency revenue growth of 3.2% in September, driven by a “strong performance across our Beauty division.”

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THG Chief executive Matthew Moulding said: “Q3 has been another strong quarter of progress across the Group, with each division delivering improved performances. The pivots made within each division to ensure they thrive in a high inflation global environment are bearing fruit.

“We remain focussed 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 c.£140m of capex investments, over the last twelve-month period. The steps we have taken will further underpin the future cash generation of the Group.”

Earlier this week it was revealed that the business is exploring plans to list its MyProtein nutrition business in the US following pressure from activist investors to separate the division

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