THG records record first-half revenue

HEALTH BEAUTY

Health and beauty group THG said it made substantial progress in the first half after reaching record sales of £1.1 billion and market share gains in the beauty and nutrition categories.

However, the group displayed an enlargement operating loss of £89 million in the six months to June 30, which THG attributed to the macroeconomic challenge the environment, underlying cost price inflation and headwinds on raw materials and foreign exchange.

THG said beauty saw the biggest growth in the period at 20% year-on-year to £553m. This meant that category sales accounted for 51% of group sales.

Matthew Molding, Managing Director of THG, said: I am proud to report that the group delivered record first half revenue of £1.1 billion, delivering 12.3% growth in a challenging global environment, alongside a strong performance in the previous year during lockdown.

“Our highly engaged global customer base, with high repeat rates, is a key strength of the business. Having recently reached 10 million app downloads since launch in early 2020 further strengthens the group’s relationship with consumers and our first-party data advantage. »

He added: “In the difficult macroeconomic environment, we prioritized our loyal customer base, rather than maximizing short-term gross margins by focusing on customer retention and growth. The strength, resilience and agility of our vertically integrated business model, coupled with automation, has enabled us to invest significantly in price protection for consumers currently facing unprecedented price challenges. cost of living.

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