Slimmed-down THG confident despite revenue fall
By Josh White
Date: Tuesday 29 Apr 2025
(Sharecast News) - THG reported lower revenue and widened losses for 2024, it reported on Tuesday, but maintained a positive outlook after a year of major restructuring.
The company, which demerged its technology platform THG Ingenuity last year, said it is now a leaner, more focused group centred on its Beauty and Nutrition divisions.
Revenue for the year ended 31 December fell around 5% year-on-year to £1.75bn, with a pre-tax loss widening to £202.4m from £92.3mi the year before.
Adjusted EBITDA before the demerger was £123.1mi, in line with guidance and market expectations, despite the impact of record-high whey prices pressuring margins in Nutrition.
The Beauty division posted revenue growth of 3.3% at actual exchange rates, reaching £1.108bn, while Nutrition revenues fell 11.9% to £579.8m.
THG said Beauty delivered ahead of its medium-term adjusted EBITDA margin target, helping offset challenges in Nutrition.
In the first quarter of 2025, the group's continuing revenue fell 6.1% at constant currency to £371.4m.
Beauty revenues declined 10% year-on-year, reflecting tough comparisons against a strong prior year period boosted by an early Easter and an additional trading day.
Nutrition returned to modest constant currency growth of 0.1% during the quarter.
Chief executive Matthew Moulding described 2024 as a year of "change and evolution," highlighting the demerger, debt refinancing through to 2029, and THG's entry into the FTSE 250.
He emphasised that the group was now more efficient following operational improvements, including greater use of automation and AI.
Despite ongoing market uncertainty and the potential impact of consumer demand factors later in the year, THG reaffirmed its full-year guidance for mid-single-digit revenue growth in 2025.
The company also said it expected limited exposure to new US tariffs and plans to offset rising employment costs with operational savings.
THG recently rejected a takeover bid for its Myprotein brand from former director Iain McDonald, reinforcing its commitment to its Nutrition operations.
Looking ahead, the group said it was focused on building market share, launching new brands, and maintaining a capital-light model to drive sustainable growth and cash generation.
Reporting by Josh White for Sharecast.com.
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