THG, which owns brands including Lookfantastic and MyProtein, returned to positive constant currency revenue growth in September at +3.2%, “driven by a strong performance across the Beauty division”.
In its third quarter trading statement for the period ending 30 September 2023, THG reported an easing of the impact caused by destocking within Beauty, which is up 5.1% CCY. It also recorded higher recurring revenues for its proprietary ecommerce platform Ingenuity, up 7.6%.
Furthermore, FY2023 guidance remains unchanged with FY23 revenue guidance of 0-5% and positive free cash flow in H2, with cashflow breakeven in FY23 and £5mn cash inflow in Q3.
“Q3 has been another strong quarter of progress across the group, with each division delivering improved performances. The pivots made within each division to ensure they thrive in a high inflation global environment are bearing fruit,” said Matthew Moulding, CEO of THG.
“The momentum with which we exited Q3 was especially pleasing, with the group returning to positive constant currency revenue growth of +3.2% in September, driven by a strong performance across our Beauty division.
“We remain focussed on restoring margins to pre-inflation levels while continuing to focus on cash generation. This is reflected in a best ever Q3 profit performance from our Nutrition division. Our cash discipline has been excellent, reflected in delivering positive free cash flow of £5m, despite making c.£140m of capex investments, over the last twelve-month period. The steps we have taken will further underpin the future cash generation of the group.”
LookFantastic is ranked Leading in the RetailX UK Top500 2023 report.
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