Earnings surge at THG despite revenue dip

Beauty-to-tech firm THG reported a jump in annual earnings on Wednesday, despite a dip in revenues.

The firm, which owns beauty and nutrition brands Myprotein, Perricone MD, Cult Beauty and Lookfantastic, among others, alongside e-commerce division THG Ingenuity, said continuing revenues in the year to 31 December eased 2.8% to £1.98bn.

On a total basis, revenues fell 8.4% to £2.05bn.

THG said revenues had been hit by "positive action" to discontinue loss-making categories, with profitable sales and territories prioritised instead. Revenues also returned to growth in the final three months of the year.

As a result, continuing adjusted earnings before interest, tax, depreciation and amortisation rose 48% to £120.4m, ahead of internal forecasts.

Total adjusted EBITDA jumped 78% to £114.1m.

Matthew Moulding, chief executive, said: "We made material progress against our strategic priorities, delivering significant profit growth following the support for our consumers through the cost of living crisis in 2022.

"Having completed our recent infrastructure investment programme, the group is now delivering operating leverage.

"The return to group revenue growth in the fourth quarter was especially pleasing, and this momentum has continued into 2024."

Looking to the current year, THG said overall revenue trends were continuing to improve, most notably in its Beauty division.