THG enjoys third quarter growth and fourth quarter progress
Manchester-based technology and retail group, THG, reported increased revenues for its third quarter period, ending September 30, 2022, today.
Turnover of £518.6m was up on last year’s £507.8m figure, while the year to date sales figure of £1.595bn is up on the £1.466bn achieved at the same point last year.
The group also confirmed the terms of the recently signed incremental £156m banking facility, provided equally by existing lenders, BNP Paribas, HSBC, and NatWest.
Full year adjusted EBITDA guidance is maintained between a range of £100-£130m pre Software-as-a-Service cost reclassification.
Guidance for cash on hand at the year end of circa £500m remains unchanged, with an additional £170m undrawn revolving credit facility available.
Founder and chief executive, Matthew Moulding, said: “Another strong quarter of delivery across our Beauty and Nutrition divisions has enabled market share growth in our key global territories.
“We remain committed to our strategy of supporting our customers around the globe through investment in price protection, without compromising on quality or choice. As commodity prices ease further, we remain well positioned to grow margins into 2023, whilst reducing pricing to consumers.
“This positions the group well in continuing to expand market share. As cost of living pressures rise, customers are continuing to prioritise beauty, health and wellness categories and, through investing in bringing them into and retaining them within the THG ecosystem, we are laying the foundations for our future growth.”
Mr Moulding, who earlier this month announced he had increased his family’s stake in the group after Japanese investment giant SoftBank Group, agreed to sell its stake in the online retailer, added: “The fourth quarter has started positively, and we are well positioned from a logistics and supply perspective to meet the significant uplift in demand anticipated during the cyber period, whilst continuing to deliver a high quality customer experience.
“I’m delighted to confirm the signing of the recently announced £156m of incremental capital from three long-standing lending partners on highly attractive terms. Given the current market environment, this is a strong endorsement of the group’s long term business model, alongside the recently announced increased investment from Qatar Investment Authority.”
