THG, the online retail and tech company, has announced impressive Q3 results with a 2.1% increase in group revenue compared to the previous year. The Beauty, Nutrition, and Ingenuity sectors also experienced growth, with a 3.8% rise in revenue during the three-month period leading up to September. This has resulted in an overall group revenue of £518.6 million, showing a remarkable 37% increase over the past two years.

Breaking it down further, THG Beauty saw a significant growth of 4.9% with revenue reaching £259.7 million. This represents a substantial rise of 64.9% compared to two years ago. Similarly, Ingenuity witnessed a 1.3% increase in revenue, amounting to £51.7 million, which marks a considerable leap of 45.9% over two years. Additionally, Ingenuity Commerce revenue surged by 5.9%, reaching £12.3 million, an impressive growth of 144.5% compared to two years ago. The success seen in THG Beauty can be attributed to the company’s strategic endeavors in key markets.

THG credits the stability and consistency of consumer behavior during the third quarter to the resilience of the beauty, health, and wellness sectors. The average order values remained steady, and the repeat rates remained consistent with the first half of the year. Moreover, the company experienced an increase in new customers through its apps, resulting in higher average order values and order frequency compared to non-app sales.

THG Ingenuity, the company’s third-party e-commerce offering, has recently undergone a repositioning under the guidance of CEO Vivek Ganotra. The primary focus is now on larger clients with higher contract values, utilizing THG’s proprietary technology platform and end-to-end proposition. This strategic move has already yielded a strong and growing pipeline of opportunities for Ingenuity, both with existing clients and through new propositions.

Looking forward to Q4, THG anticipates an increase in momentum as it enters its peak trading period. The company has also finalized the terms of its recently signed £156 million banking facility. Full-year adjusted EBITDA guidance remains within the range of £100 million to £130 million.

CEO Matthew Moulding expressed satisfaction with the strong quarter and emphasized the company’s commitment to supporting customers globally by investing in price protection and maintaining quality and choice. Moulding also highlighted the potential for margin growth and an expanded market share as commodity prices ease and cost of living pressures rise.

Overall, THG is optimistic about its future growth and is well-prepared to meet the heightened demand expected during the upcoming cyber period, while maintaining a high-quality customer experience.

Useful links:
1. THG Official Website
2. THG Investor Relations