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THG shakes up board as it reaches 'record' revenues

Sophie Smith
15 September 2022

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.”

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