THG shakes up board as it reaches 'record' revenues

THG, owner of Lookfantastic and Cult Beauty, has reported "record revenues" for the first half ending 30 June 2022, alongside a number of new appointments to its Board of Directors. 

Group revenue increased 12.3% to £1 billion, reportedly due to stable customer behaviour metrics driving market share gains in the beauty and butrition markets.

THG Beauty revenue was up 20% to £552.8 million, compared to £460.8 million in H1 2021. This was supported by a 50% increase in brand partners and the integration of US-based Dermstore and Cult Beauty in the UK.

Adjusted EBITDA totalled £32.3 million, with an operating loss of £89.2 million due to the group's consumer price protection investment strategy.

Reduced gross profit margin was 42.1%, reflecting THG's strategy to partially shield consumers from adverse macro-economic conditions and a period of high raw material costs.

In addition, THG has announced that its Senior Independent Director Zillah Byng-Thorne is stepping down from its board with immediate effect, together with Non-Executive Director Andreas Hansson.

Damian Sanders will assume the role of interim Senior Independent Director as THG continues to "reshape its leadership to ensure it is best-placed to generate long-term value creation for shareholders". The group has also announced the appointment of Gillian Kent and Dean Moore as its new independent Non-Executive Directors.

Matthew Moulding, CEO of THG, said:“Against the tough macro-economic backdrop, we have prioritised our loyal customer base, over maximising near term gross margins focusing on retention and growth of consumers. The strength, resilience and agility of our vertically-integrated business model, coupled with automation, has enabled us to significantly invest in price protection for consumers currently facing unprecedented cost-of-living challenges.

“With a strong balance sheet and category leading positions within substantial end markets that continue to benefit from long-term structural growth, we have confidence in our ability to deliver long-term value for shareholders and remain on track to be cashflow positive in 2024.”