29th Apr 2025 12:07
(Alliance News) - THG PLC on Tuesday said it expects a "positive impact" to profit margins in the second half of 2025, after a widened loss and revenue decline in 2024.
THG, formally known as the Hut Group, is a Manchester, England-based online beauty product and sport nutrition retailer owning brands such as Lookfantastic, MyProtein and Cult Beauty.
THG shares were down 7.1% to 26.25 pence in London on Tuesday morning.
THG reported a pretax loss from continuing operations of GBP202.4 million in 2024, widened from GBP92.3 million in 2023, as revenue declined by 6.8% to GBP1.75 billion from GBP1.88 billion.
In addition to the revenue decline, THG said the wider loss was due to a write down of previously recognised deferred tax assets. It said this reflected the split between continuing and discontinued operations, amid the demerger of its Ingenuity technology division, which led to a change in profile for tax losses and deferred tax recognition.
Within revenue, Nutrition division revenue decreased by 12% as a result of weaker online sales, consequences of a MyProtein rebrand, and lower-than-expected Asia performance, meaning the division experienced "a more challenging year", THG said.
Nutrition division revenue also was hurt by a one-off reduction in ASP nutrition supplements, driven by efforts to clear legacy stock.
Chief Executive Officer Matthew Moulding said: "Both our businesses have undertaken extensive model changes over the past 24 months. Beauty has focused on more profitable markets and building loyalty schemes, while MyProtein has pressed ahead in undertaking a successful rebrand, underpinning rapid growth across global offline retail and licensing."
Turning to the new year, THG reported revenue of GBP371.4 million from continuing operations - the Beauty and Nutrition divisions - in the first quarter, down 6.7% from GBP399.2 million a year prior.
At the start of January, THG completed the demerger of its Ingenuity business, which offers the THG e-commerce platform to other online retailers.
Looking ahead to all of 2025, THG maintained its expectations of mid-single-digit percentage revenue growth in its Nutrition and Beauty divisions. It expects a "positive impact" to margins in the second half and beyond.
THG said it aims to grow its presence in global markets and strengthen its approach by integrating both online and in-store retail channels.
By Olivia Mason-Myhill, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Thg