With group revenues coming in at £958.8 representing 44.7 per cent YoY growth and +95.0 per cent 2 year growth (constant currency), and with THG Beauty revenues at +59.0 per cent YoY growth, the THG board has much to celebrate with its team. Adjusted Group EBITDA at £81.2m, was 38.6 per cent up on H1 2020.
The business also announced that THG Beauty will be separated out and listed in 2022.
During its first half THG shipped more than 20 million orders to 195 countries. Returning customers generated 76 per cent of direct-to-consumer H1 2021 Group revenues, reinforcing the repeat nature of THG’s digital brands, Ingenuity’s frictionless retailing environment and the enduring nature of consumer channel shift to online.
The US represented 19 per cent of group revenue emanating from growth across beauty and nutrition categories, aided by the acquisition of the Dermstor, prestige skincare business. Dermstore was fully migrated to the Ingenuity platform ahead of schedule, with all THG Beauty own brands expected to be available to purchase at the dermstore site by the end of the year.
THG Nutrition also fared well, leveraging the canning and bottling expertise it acquired with Berryman’s which expedited the launch of 14 new products in the first half of 2021, supporting YoY ready-to-drink revenue growth of +59 per cent.
Meanwhile, Ingenuity Commerce revenues grew +165.5 per cent to £18.3m during the period with over 70, end-to-end, fully localised and serviced brand sites scheduled to launch in H2 2021 (vs 50 in H1 2021), as the business development function continues to scale with commitments to build this global team to over 100 people by the year-end.
The Group’s measure of gross profit margin at 46.5 per cent, is +130bps ahead of H1 2020, with gross profit growth of +46.1 per cent on H1 2020 driven by strong underlying trading margins in nutrition, beauty and Ingenuity Commerce.
Matthew Moulding, Executive Chairman and CEO of THG, commented: “I am delighted to announce a strong first-half performance across all divisions, as we continue to invest significantly in support of our strategic growth ambitions. This investment is across our entire business, including our infrastructure, namely our recently-opened ICON campus and our global distribution network, in our Ingenuity platform, in building leading digital brands, and most importantly, in our people.
“In May, we announced the financial and trading partnership opportunity with SoftBank, one of the world’s leading technology investors. We are only at the start of this relationship, but we are pleased to have already established multiple live commercial partnerships between the SoftBank portfolio and our Ingenuity platform. We continue to see an acceleration in levels of enquiry from global enterprises looking to leverage the Ingenuity platform, and I believe the global growth opportunity for Ingenuity to be unparalleled.
“Today we also update on the roadmap to separating our key trading divisions and announce our commitment to list THG Beauty in 2022, which we believe will create further value for our shareholders. “We are also proud to be launching our 2030 sustainability strategy, outlining our key priorities and commitments in the coming weeks.”
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