Beauty and nutrition are key drivers behind THG's strong Q3 sales.
The owner of Cult Beauty and LookFantastic has reported a 2.1% increase in revenue to £518.6m in the third quarter ending 30 September 2022.
THG said consumer behaviour “remained stable and consistent” during Q3, and “resilience” was shown in key categories.
The group’s Beauty category grew +4.9% during this time, increasing revenue to £259.7m.
Its prestige portfolio includes eight owned brands across skin care, hair care and cosmetics, including ESPA, Perricone MD and Illamasqua.
Its Nutrition category – which includes Myprotein and family brands Myvegan, Myvitamins, MP Activewear and MyPRO – saw a +2.9% increase in revenue to £163.8m.
"Another strong quarter of delivery across our beauty and nutrition divisions has enabled market share growth in our key global territories,” said THG’s CEO Matthew Moulding.
“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, while reducing pricing to consumers.
“This positions the group well in continuing to expand market share.”
THG’s Ingenuity category, the group’s ecommerce solutions offer, also reported a +1.3% increase in revenue to £51.7m.
The category has been repositioned under CEO Vivek Ganotra “to focus on larger, higher contract value clients, leveraging the group’s proprietary technology platform and end-to-end proposition".
THG also saw stable average order values, repeat rates in line with the first half and growth in new customers acquired through apps.
“As cost of living pressures rise, customers are continuing to prioritise beauty, health and wellness categories,” explained Moulding.
“And, though investing in bringing them into and retaining them within the THG ecosystem, we are laying the foundations for our future growth.”
THG has also reported a "positive start" to Q4, with “momentum expected to accelerate” as the group enters the Christmas trading period.
“We are well positioned from a logistics and supply perspective to meet the significant uplift in demand anticipated during the cyber period,” said Moulding.
The group has also confirmed the signing of £156m of incremental capital from three lending partners – BNP Paribas, HSBC, and NatWest.
“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,” added Moulding.
Last month, THG shares shrunk after rising interest rates and energy costs led it to update its full-year guidance for the remainder of the year.
