THG has reported a 109 per cent increase in first-half adjusted EBITDA to £42.8m, supported by a strong performance from its Nutrition division.
The eCommerce group, which owns brands including Myprotein, Lookfantastic and Cult Beauty, benefited from growth in its nutrition business alongside pricing actions introduced during the period.
However, THG expects revenue growth to slow to around 2 per cent in the third quarter as changes to European Union customs rules affect its Beauty business.
The regulatory changes have increased the cost of sending lower-value eCommerce orders into the EU, creating additional pressure on the economics of cross-border sales.
THG Beauty operates a portfolio of online beauty destinations, including Lookfantastic and Cult Beauty, giving the group significant exposure to international eCommerce.
Despite the short-term pressure, THG’s improved first-half profitability demonstrates progress in its efforts to strengthen margins and focus on more profitable growth across the business.
Share