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UK’s THG returns to revenue growth in Q4 on demand for beauty products
Global Banking and Finance Review
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(Reuters) – British e-commerce firm THG said on Wednesday its revenue continued to improve in 2024 after returning to growth in the last quarter of 2023, thanks to demand for beauty products.
(Reuters) – British e-commerce firm THG said on Wednesday its revenue continued to improve in 2024 after returning to growth in the last quarter of 2023, thanks to demand for beauty products.
After a bumper $7 billion London initial public offering in 2020, THG has issued multiple profit warnings that have weighed heavily on its shares and led to several takeover approaches, all of which have been rejected.
Inflationary and cost-of-living pressures over the last year had also led to revenue declines at the firm.
THG has undertaken restructuring as part of a strategic review of its loss-making operations last year, leading it to sell its entertainment products division THG OnDemand and discontinue some small brands within its beauty and nutrition divisions.
THG, which owns online brands Lookfantastic and Myprotein, reported a smaller operating loss of 185.4 million pounds ($235 million) for the year ended Dec. 31, compared to 495.6 million pounds a year earlier.
Total revenue for the year fell 8.7% to 2.05 billion pounds.
Q4 revenue grew 1.1%, it said, without providing the exact figure.
“Our fulfilment network is becoming increasingly optimised through a combination of robotics automation, AI and the onboarding of new Ingenuity clients utilising existing capacity,” said CEO and founder Matthew Moulding.
“The return to Group revenue growth in Q4 was especially pleasing, and this momentum has continued into 2024,” Moulding added.
THG plans to issue a Q1 2024 trading update by the end of April.
($1 = 0.7888 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Varun H K)
Revenue growth refers to the increase in a company's sales over a specific period, indicating improved business performance and market demand.
An operating loss occurs when a company's operating expenses exceed its revenues, indicating financial difficulties in its core business operations.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power over time.
Restructuring is a corporate management strategy involving significant changes to a company's structure or operations to improve efficiency and profitability.
Beauty products are items used for personal care and enhancement, including cosmetics, skincare, and haircare products.
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