THG hails strong Q3, says Ingenuity is focusing on higher-contract-value clients
Online retail and tech company THG has released its Q3 results and said group revenue rose 2.1% year on year. It was also up 3.8% across Beauty, Nutrition and Ingenuity in the three months to the end of September.
Group revenue reached £518.6 million, which was up more than 37% on a two-year basis. Within that, THG beauty was up 4.9% at £259.7 million, a rise of 64.9% against two years ago. And Ingenuity was up 1.3% at £51.7 million, a leap of 45.9% over two years. Ingenuity Commerce revenue rose 5.9% to £12.3 million, which was a giant jump of 144.5% against two years ago.
The THG Beauty growth “reflects continued share gains in strategic markets”.
The company said that consumer behaviour during the third quarter “remained stable and consistent, reflecting the resilience of beauty, health and wellness categories”. It saw stable average order values (AOVs), repeat rates in line with H1 and growth in new customers acquired through apps continuing to drive higher AOVs and order frequency versus non-app sales.
Meanwhile, its third-party e-commerce offer THG Ingenuity 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. Ingenuity has a strong and growing pipeline of these opportunities in addition to expanding propositions across the existing client base”.
And it has made a “positive start to Q4 with momentum expected to accelerate as the group enters its peak trading period”.
The company also confirmed the terms of its recently signed incremental £156 million banking facility and said full-year adjusted EBITDA guidance remains a range of £100 million to £130 million (pre-Software-as-a-Service cost reclassification).
CEO 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.
“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.”
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