THG has started 2024 on a strong note, with increased beauty sales driving revenue growth in Q1.
Revenues rose 4.5% to £455.4m, an improvement on the loss of 5.6% it reported during the same period last year.
THG Beauty's "standout performance" led the brand owner’s strong figures during the quarter, with sales rising 11.1% to £267.6m.
This is up from the 12.4% loss it saw in Q1 2023, as the business updated its strategy to focus on “more profitable” customers and territories closer to its global distribution hubs.
"Following the group's return to revenue growth in Q4 2023, it is pleasing to report an acceleration in Q1, which is testament to the hard work and dedication of our people, who've remained focused on the task in hand despite the tough macro-economic backdrop,” said Matthew Moulding, CEO of THG.
The Lookfantastic-owner also highlighted its recent acquisition of skin care brand Biossance, which was migrated onto the business’ Ingenuity distribution platform in January this year.
“Early signs are positive and we are confident that Biossance will scale to become one of our largest own brands, with prominence in the US, both online and across major retailers,” THG added in a statement.
In a LinkedIn post, Moulding praised the beauty division’s progress compared with the same period in 2023.
“We were busy overhauling both the Beauty & Ingenuity business models, improving them, making them stronger for the years ahead,” wrote Moulding in the post.
“This was negatively impacting Beauty & Ingenuity revenues in early 2023 – an inevitable but small sacrifice to make.”
Moulding also signalled that the business will continue to invest in and improve its beauty offering, which is helping to offset lagging sales in its Nutrition segment.
"Beauty delivered double digit growth in the quarter, with a high-quality, loyal customer base bringing greater profitability per order across a more efficient cost base,” Moulding added.
The positive Q1 performance builds on THG’s return to growth in the final quarter of 2023.
Although it was a decline year-on-year, revenues increased by 1.1% in Q4.
The brand owner’s losses also narrowed in 2023, as pre-tax losses reduced to £252m in its preliminary FY23 results.
This a reduction from the loss of £549.7m in 2022.
Revenues fell by 8.7% to £2bn for the full year, however, but was attributed to THG’s decision to discontinue loss making categories during the year.
