24
June 2024
THG PLC
AGM Trading
Statement
Group performance on track,
FY 2024 guidance unchanged
Multi-year THG Ingenuity
& Myprotein partnership agreed with Frasers Group
PLC
THG PLC ("THG" or the "Group")
provides the following update on trading ahead of its Annual
General Meeting (AGM) later today.
All comparative
figures are
continuing CCY unless otherwise stated.
The Group has made further progress
in H1 2024 in line with previous revenue guidance, and Q2 will
represent the third consecutive quarter of year-on-year (YoY)
revenue growth. The Group's performance is underpinned by positive
trading within the Beauty, external Ingenuity and offline Nutrition
businesses, which have helped offset continuing FX headwinds within
Asia. Guidance for FY 2024 remains
unchanged[1].
THG
Beauty
· Positive momentum from Q4 2023 continued into H1 2024 with a
strong recovery in beauty manufacturing following the prior year
industry de-stocking.
· Customer engagement continues to strengthen across THG Beauty
with a +45% increase in app downloads YoY, and increasing loyalty
programme membership.
THG
Nutrition
· The
rebranding across the Myprotein range is progressing well, with
c.80% of products by online revenue planned to be under new
branding by the end of Q3 2024. Offline retailers are responding
especially well to the new brand positioning, with major listings
now live across key territories. These include both Costco and GNC
in the US, as well as across major UK grocers, Boots and
WHSmith.
· The
introduction of the new packaging and brand designs have been
carefully managed to avoid significant wastage enabling continued
sell-through online. Developing offline relationships have also
been protected by avoiding the use of clearance channels to speed
up the rebranding process.
· This careful
approach across such an extensive product range creates some
temporary availability gaps, while customers naturally prefer new
and refreshed packaging. This is a major factor in the online YoY
sales decline.
THG
Ingenuity
· THG
Ingenuity momentum continues to strengthen, underpinned by an
acceleration of third party revenue growth in Q2 vs. Q1, and +30%
monthly recurring revenue (June 2024).
· H1
revenue growth has been broad based across both new and existing
clients, and technology, digital marketing and fulfilment
services.
Partnership with Frasers Group PLC ("Frasers
Group")
THG
and Frasers Group have agreed a partnership across several
areas.
· THG Ingenuity
and Frasers Group have entered a multi-year Ingenuity agreement
including courier management services and re-platforming the
Frasers Group's Australian fulfilment and logistics
operations.
· Frasers
Group's credit and loyalty platform, Frasers Plus, is now
integrated into Ingenuity's checkout and will soon be available to
both THG's Beauty and Nutrition customers, as well as to Ingenuity
clients.
· A
curated range of Myprotein products to be launched instore at
Sports Direct, including the Hyrox x Myprotein range. Myprotein is
not only the world's No1 online sports nutrition brand but is also
the fastest growing sports nutrition brand in the UK retail
market[2]. The launch across Sports Direct
stores further supports the success of the recent rebrand and the
offline growth potential of the brand. Launching collaboration
products through Sports Direct further broadens the Myprotein brand
appeal, bringing the rapidly growing Hyrox community to both
Myprotein and Sports Direct alike.
·
THG has agreed to sell its portfolio
of luxury goods websites, including www.coggles.com,
to the Frasers Group. Ingenuity will continue to support the brand
portfolio across technology, digital marketing and fulfilment
services post disposal.
· From a
standing start almost 11 years ago, THG's luxury division grew to
c. £43m sales and broadly break-even for FY 2023, despite a broader
challenging luxury market. This has only been possible through the
hard work and dedication of THG's luxury team, to whom we all want
to extend our thanks and gratitude.
UK
listing regime review
The FCA's listing regime review is
expected to conclude shortly. As previously indicated, the Board
will analyse the outcome of the FCA's review following its
conclusion and assess transferring to the single listing category
of Equity Shares (commercial companies).
For
further information please contact:
ENDS
Notes to editors
THG PLC operates three distinct
businesses in Beauty, Nutrition and Ingenuity, each scaled from the
UK to hold global leading positions in their respective
sectors.