THG has posted Q4 revenues of £597.9m equating to 1.1 per cent growth with beauty up by 2.6 per cent, Ingenuity up by 8.1 per cent, and nutrition falling by 3.9 per cent.
The business had protected customers by absorbing higher costs in 2022 and in 2023 had set about restoring Nutrition’s strong profitability levels. This saw Nutrition revenues flat in FY 2023 while the business delivered much improved margins.
CEO Matt Moulding said: “2023 was a year that threw up many challenges for all businesses, and I’m delighted in how the group not only responded to these challenges but grew stronger through the year.
“The return to revenue growth for the Beauty and external Ingenuity clients were clear Q4 highlights, especially given the number of charges made to their business models over the past 18 months. But arguably the most pleasing performance came from our recently automated global fulfilment network. Q4 order volumes were delivered in record times, with the average global delivery times reduced by one day. These widespread service improvements were achieved alongside a meaningful reduction in the cost of fulfilment.”
The business also announced that it had reached an agreement in principle with Holland & Barrett (H&B) regarding a new Ingenuity partnership. Once cleared through an employee consultation process, from Q2 2024, H&B will use THG’s automated facilities in the UK, with THG Ingenuity becoming H&B’s main eCommerce UK & Ireland operational partner.
Anthony Houghton, chief operating officer, Holland & Barrett said: “Holland & Barrett’s goal is to be the trusted health and wellness partner for over 100 million people globally by 2026.
“Our proposed three-year partnership with THG Ingenuity will mean we can continue to grow at pace with a partner who are industry experts in D2C fulfilment, while we invest in transforming our supply chain capabilities.”
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