THG (THG) H2 2024 earnings summary

Executive summary

• Achieved 1% year-over-year revenue growth to approximately GBP 1.9 billion in 2024, with continuing adjusted EBITDA up 1% to GBP 123.1 million.

• Completed the demerger of Ingenuity, refocused on two core businesses: Beauty and Nutrition, and entered the FTSE 250 Index.

• Over 40 million customers served, with more than 50% of revenues from overseas markets.

• Group maintained robust liquidity, reduced gross debt, and completed a successful equity raise and debt refinancing to 2029.

• Sustainability initiatives advanced, with 92% renewable electricity use and recognition in global sustainability rankings.

Financial highlights

• Statutory revenue from continuing operations: £1,751.4m (down 6.8% YoY); total group revenue including discontinued operations: £1,943.3m.

• Beauty contributed GBP 1.1 billion with 3.3% sales growth year-over-year; Nutrition revenue £579.8m (–11.9% YoY).

• Adjusted EBITDA for THG Beauty: £79.8m (margin 7.2%, up from 4.1%); THG Nutrition: £34.5m (margin 6.0%, down from 13.5%).

• Gross profit reached GBP 704.8 million with a margin of 41.7%.

• Free cash flow neutral post-demerger; cash and available facilities at year end: £550m.

Outlook and guidance

• Maintains mid-single-digit revenue growth guidance for 2025, supported by prestige beauty demand and nutrition recovery.

• Expects Group-adjusted EBITDA margins around 9% medium-term, with nutrition targeting a return to 12% margin.

• Anticipates improved free cash flow due to lower capital expenditure and lease costs post-demerger.

• Strategic focus on expanding omnichannel presence in nutrition and deepening customer engagement in beauty.

• Continued investment in product innovation, digital capabilities, and sustainability initiatives.