Revenues dropped at THG plc last year as losses widened.
Year-on-year sales also fell in the first quarter of 2025 – but founder and CEO Matt Moulding remained bullish on the eCommerce firm’s prospects following the demerger of tech platform THG Ingenuity.
For the 12 months ended 31st December 2024, revenue fell 5% YoY from just above to just below £2bn.
Adjusted EBITDA fell slightly but remained at £114m. Operating loss for the period was £147.9m, widening 277% from £39.2m in 2023.
In the first quarter of 2025 trading – ended 31st March 2025 – total revenue fell 10.6% to £375.6m, with THG Beauty suffering a 10% drop to £223.6m and THG Nutrition falling 2% to £147.8m.
In its statement to the London Stock Exchange, THG said FY24 adjusted EBITDA was inline with guidance and consensus and described the financial performance as ‘robust’ in a ‘transformative year’.
It reiterated its January guidance for mid-single digit revenue growth in FY25.
The business demerged tech platform THG Ingenuity in 2024, leaving THG ‘as a cash generative, health and wellness consumer brands group’.
It also entered the FTSE 250 and refinanced its long-term capital structure to December 2029.
This month THG rejected a bid worth £400-600m from former director Iain McDonald for its Myprotein brand.
McDonald – an early investor in ASOS PLC who also sits on the board of boohoo, now rebranded to Debenhams Group – is the executive chair of Selkirk Group PLC, a shell company founded last year.
In March 2024 he stepped down from the board of THG after 14 years, with Moulding paying tribute to his ‘anchor’ and recalling early fallouts but insisting the online retailer wouldn’t have been as successful without him.
However the founder and chief investment officer of Belerion Capital, who oversaw THG’s growth and evolution into a global leader in three major categories – beauty, nutrition and technology – is now seeking to prise the nutrition brand away from THG via Selkirk.
“2024 was a big year of change and evolution for THG, the highlight of which was the demerger of the group’s technology division, THG Ingenuity at the end of the year,” said Moulding.
“We are now fully focused on THG Beauty and THG Nutrition, and I’m incredibly proud of the progress each business has made. Following extensive efficiency drives, incorporating both automation and AI, THG has become a much leaner, fitter group that has shown strong resilience in the face of record whey commodity pricing that placed temporary pressure on Nutrition margins.
“A strong performance across our Beauty business, delivering ahead of its medium-term adjusted EBITDA margin target, helped the group to deliver a pre-demerger adjusted EBITDA margin ahead of 2023 despite the transitory headwinds in Nutrition.
“Both our businesses have undertaken extensive model changes over the past 24 months. Beauty has focused on more profitable markets and building loyalty schemes, while Myprotein has pressed ahead in undertaking a successful rebrand, underpinning rapid growth across global offline retail and licensing.
“In the first quarter of this year, THG Beauty was up against a comparative period including an early Easter which is a key trading event, and an extra day’s trading. However, in its home UK and US markets, Beauty retail is trading resiliently, with a strong selection of new brand launches planned throughout the year.
“It’s also been especially pleasing to see Nutrition momentum improving throughout the quarter with February and March back in growth.
“With a capex light and efficient cost base, we are well positioned to return to sustainable growth and cash generation, whilst developing market share.”
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