THG posts rise in beauty sales
THG hailed a strong performance in its beauty division as the e-commerce firm posted its annual results.
The division, which is the largest of the firm’s units and includes the Biossance, ESPA and Lookfantastic brands, posted a 4.6 per cent rise in turnover to £1.1bn for the 2024 calendar year.
Demand for skincare and fragrance products was especially strong, jumping more than 30% during peak trading.
However, this was offset by a 8.7 per cent fall in sales in THG’s Nutrition arm to £580m.
The company’s overall revenue fell 5 per cent to Just under £2bn for the year. But the firm added it was confident it would meet full-year expectations for 2025.
At the beginning of January, THG demerged its tech and distribution business into a new private entity, Ingenuity, of which CityAM is a part.
CEO Matt Moulding said: “I’m impressed by the Group’s agility and resilience during a year of significant change for THG, ranging from the demerger of our Ingenuity business, to the sale or discontinuation of some non-core business units, and a major global rebrand of MyProtein in Nutrition.
“Our Beauty business had a standout year, underpinned by strong performances in the UK and US. The continued success of our customer loyalty and reward program, and the opening of our first-ever Lookfantastic physical store, further cement our leadership position in the global Beauty market. These achievements demonstrated significant progress against our strategic priorities and set the stage for an even more remarkable 2025.”
He added: “Despite the transitory headwinds, MyProtein achieved several notable successes: entry into the dairy market through the launch of a long-term partnership with Müller; the commencement of a co-manufacturing relationship in Japan; the expansion of our Iceland partnership, and many other licensing and retail listing agreements. We are excited to further deepen our retail expansion strategy internationally in the forthcoming year.”
THG said it expects mid-single-digit revenue growth in FY 2025, with a return to growth in its Nutrition division and continued strength in Beauty.