THG has commenced detailed work to demerge THG Ingenuity from its core business. This would, it suggests, leave THG as a listed company comprising THG Beauty and THG Nutrition, its two profitable consumer businesses.
In a statement to the Stock Market, Matthew Moulding, said: “Finally, after extensive discussions with shareholders over the past 12 months, THG is progressing options to demerge THG Ingenuity, leaving our highly profitable and cash generative global Beauty and Nutrition businesses within THG PLC. The appropriate tax clearances have been received, while the necessary separation work has previously been undertaken.”
The business also announced its half year results. Turnover had fallen to £934m from £969m, with the loss before tax reducing to £118.0m from £133.0m).
Moulding said that beauty revenue growth was up by 6 per cent and noted that a major rebranding of its Myprotein business was close to completion.
“Within licensing,” said Moulding “we entered into an exciting new long-term partnership with Müller, with co-branded dairy products launched across major retailers. Now the rebrand is largely complete, and our innovation pipeline will reaccelerate.
“Momentum in Nutrition is especially pleasing, with an expected return to revenue growth in September, providing a strong platform for both peak trading and the year ahead.”
Meanwhile, Ingenuity had added new clients GNC and Meijer in the United States as well as Holland & Barrett and WH Smith in the UK.
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