THG shares fell 6% after the owner of Lookfantastic reported a downturn in full-year 2024 revenues.
Total revenues fell to £1.94bn, down from £2.04bn in 2023, impacted by the demerger of THG’s ecommerce solutions platform Ingenuity.
The Manchester-based company’s digital logistics branch is now a standalone entity.
Operating losses were also reported at £147.9m, a significant increase on the loss of £39.2m seen in 2023.
Despite the financial hit, THG CEO Matthew Moulding hailed 2024 as a transformational year and remained optimistic about its performance going forward.
"2024 was a big year of change and evolution for THG, the highlight of which was the demerger of the group's technology division, THG Ingenuity at the end of the year,” said Moulding.
“Following on from the demerger, we immediately undertook the early refinancing of the group's debt, reducing gearing and putting in place long term facilities to the end of 2029, alongside entering the FTSE 250.”
THG’s 2024 results were offset by a strong performance from its beauty division, which reported a 4.6% jump in revenues to £1.1bn in 2024.
Lookfantastic, along with Cult Beauty, Espa and Grow Gorgeous, all sit within THG’s Beauty.
This stood in contrast to the 8.7% drop in revenues at THG Nutrition.
Moulding continued: “A strong performance across our beauty business, delivering ahead of its medium-term adjusted EBITDA margin target, helped the group to deliver a pre-demerger adjusted EBITDA margin ahead of 2023 despite the transitory headwinds in nutrition.”
Although Moulding remained confident in THG’s stabilisation, the company experienced a rocky first quarter of trading in 2025.
Total revenue fell by 10.6% to £375.6m during Q1 2025, with THG Beauty seeing a 10% decrease in income to £223.6m.
THG claimed beauty’s retail performance was impacted by “weaker trading across the industry of several hugely popular trending brands”.
"In the first quarter of this year, THG Beauty was up against a comparative period including an early Easter which is a key trading event, and an extra day's trading,” said Moulding.
“However, in its home UK and US markets, beauty retail is trading resiliently, with a strong selection of new brand launches planned throughout the year.”
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