TIDMTHG
RNS Number : 3663D
THG PLC
21 June 2023
21 June 2023
THG PLC
AGM Trading Statement
Strong profitability progression with cash generation ahead of
expectations in H1 2023
FY 2023 guidance unchanged
THG PLC ("THG" or the "Group") provides the following update on
trading ahead of its Annual General Meeting (AGM) later today.
The Group has had a strong Q2 2023, with a continued successful
focus on profitability and cash generation. A significant increase
in H1 2023 profitability is expected, with Adjusted EBITDA in the
range of GBP44m to GBP47m (H1 2022: GBP32.3m), and continuing[1]
Adjusted EBITDA in the range of GBP47m to GBP50m. Guidance for FY
2023 remains unchanged as disclosed at the time of the FY 2022
results in April, with Adjusted EBITDA expected to be in line with
the company consensus[2].
Free cash flow performance for the 12 months to 30 June 2023 is
ahead of expectations and anticipated to be a c. GBP40m outflow.
The Group remains well on track to deliver free cash flow
neutrality[3] for the full year, with adjusting items materially
lower than the prior year.
THG Nutrition has had a particularly strong start to the year,
with the pricing decision to support consumers through exceptional
market-wide inflationary conditions in FY 2022 now paying
dividends. Commodity prices continue to ease, with further margin
benefits expected in H2 2023.
In THG Beauty, our online retail platforms have focussed on
profitable sales in markets where our localised infrastructure can
deliver economies of scale. We expect further sales momentum in the
second half of the year, supported by beauty manufacturing as the
temporary industry-wide de-stocking comes to an end.
THG Ingenuity continues to make good progress on building its
client base across higher value enterprise accounts and its network
of global strategic alliances and remains on track to add GBP1bn
incremental GMV to the platform across Technology, Digital and
Operational services during FY 2023. In addition to partnerships
with BigCommerce, AutoStore, PwC and Elastic Path announced to
date, Ingenuity has recently partnered with Commercehub, one of the
world's largest commerce networks, to extend Ingenuity's
marketplace solution and create a complementary, managed
marketplace offering.
For the Group, Adjusted EBITDA margin accretion into FY 2024 and
beyond will be driven by annualised commodity pricing benefits,
ongoing automation efficiencies and operating leverage, in addition
to normalised capital expenditure, underpinning positive free cash
flow guidance for FY 2024.
Corporate Governance
THG also announces that it has been notified that Founder and
Chief Executive Officer Matthew Moulding has today transferred the
Special Share held by him and, as a result, all rights of the
Special Share have now ceased in accordance with THG's articles of
association. The Special Share will be cancelled by THG.
The Group's intention in relation to moving to a premium listing
remains as stated in its FY 2022 results in April, with timing
subject to the final outcome of the FCA's review for reform of the
listing regime.
In a separate announcement today, the Board has also made
changes to its composition with the addition of Helen Jones as
independent Non-Executive Director, in addition to Iain McDonald
stepping down from the Remuneration Committee to focus on his
Sustainability and Nomination Committee commitments.
For further information please contact:
Investor enquiries:
Greg Feehely, SVP Investor Relations Investor.Relations@thg.com
Kate Grimoldby, Director of Investor
Relations and Strategic Projects
Media enquiries:
Powerscourt - Financial PR adviser Tel: +44 (0) 20 7250
1446
Victoria Palmer-Moore/Nick Dibden/Nick thg@powerscourt-group.com
Hayns
THG PLC
Viki Tahmasebi Viki.tahmasebi@thg.com
ENDS
Notes to editors
THG is a vertically integrated, digital-first consumer brands
group, retailing its own brands in beauty and nutrition, plus
third-party brands, via its complete digital commerce solution,
Ingenuity, to an online and global customer base. THG's business is
operated through the following divisions:
THG Beauty: The globally pre-eminent digital-first brand owner,
retailer, and manufacturer in the prestige beauty market, combining
its prestige portfolio of eight owned brands across skincare,
haircare, and cosmetics. It is a global route to market for over
1,300 third-party premium brands through its portfolio of websites,
including Lookfantastic, Dermstore, Cult Beauty and Mankind and the
beauty subscription box brand GLOSSYBOX.
THG Nutrition: A group of digital-first Nutrition brands, which
includes the world's largest online sports nutrition brand
Myprotein, and its family of brands (Myvegan, Myvitamins, MP
Activewear and MyPRO), with a vertically-integrated business model,
supported by global THG production facilities.
THG Ingenuity: Ingenuity provides a complete digital commerce
solution for consumer brand owners across its three pillars of
technology, digital and operations. Being part of the THG group, a
global digital brand owner in Beauty & Nutrition, Ingenuity is
uniquely placed to bring relevant, practical, and international
expertise in every area of commerce.
[1] Continuing Adjusted EBITDA excludes the discontinued
OnDemand and ProBikeKit businesses. During H1 2023, the variance
between reported Adjusted EBITDA and continuing Adjusted EBITDA is
expected to be c. GBP3m. This reflects good progress in exiting the
THG OnDemand business and the disposal of ProBikeKit.
[2] As dated 19.06.23 and available at Analyst Consensus - The
Hut Group (THG)
[3] Group free cash flow is calculated after working capital,
net capital expenditure, adjusting items, tax and financing (prior
to debt capital repayments and deferred consideration on
acquisitions).
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END
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