THG has posted group revenues of £1.1bn for the six months to 30 June 2022, up from £958.8m for the same period last year. THG Beauty, THG Nutrition and THG Ingenuity each contributed year-on-year growth, with THG OnDemand slipping marginally.
Its group operating loss was £89.2 million as compared with £17.4 million last year and pre-tax losses are also up from £81.3 million to £108 million. The business cited an £11.3 million of incremental international delivery costs, mostly in Asia, due to the absence of traditional delivery routes and elevated costs, as well as £2.1 million in extra distribution costs related to its fulfilment facilities. Divisional reorganisation and acquisition integration also contributed to £9.5 million in administration costs.
The business had been working to a lower gross profit margin – 42.1 per cent as opposed to 46.5 per cent – as it absorbed the additional costs it had incurred for raw materials and other costs, rather than pass these on to its customers.
Matthew Moulding, chief executive said: “I’m proud to report the group achieved H1 revenues of £1.1bn, delivering +12.3 per cent growth against a challenging global backdrop, alongside a strong prior year performance during lockdown.
“The group continues to deliver significant infrastructure development, which in turn has supported market share growth through improved localised service as well as substantial operational savings. The first half of this year saw continued strong customer metrics, with active Beauty and Nutrition customers now 113 per cent higher on a three-year basis.”
In other news, THG confirmed a new appointment to its board with Gillian Kent and Dean Moore joining as independent non-executive directors effective 15 September. It also confirmed that Zillah Byng-Thorne is stepping down from the role of senior independent director along with non-executive director Andreas Hansson. Damian Sanders assumes the role of interim senior independent director.