Sales slip at Myprotein owner THG after spinning off Ingenuity arm
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Online retail firm THG has revealed lower revenues after spinning off its Ingenuity platform business. The Myprotein and Cult Beauty owner saw sales dragged down by continued weakness in its nutrition business, although it highlighted “improving” demand for the rest of the financial year.
It comes after THG spun off its Ingenuity technology platform and distribution business earlier this month. In October, THG said it would demerge Ingenuity, which works closely with warehouses to manage online sales, in order to focus on its core beauty and nutrition businesses.
On Thursday, the group said revenues across the remaining business were down 5% at £493.7 million for the three months to December 31. Revenues across this business were down 2.5% for 2024 as a whole. I'm impressed by the group's agility and resilience during a year of significant change for THG.
It said the dip in the latest quarter was driven by a slump in its nutrition arm, where sales fell 12.7% for the latest quarter. THG stressed that it was a “transitional year” for THG, as it increased discounts in order to sell through old stock amid a rebrand.
The group highlighted that it saw “improving underlying trends within nutrition particularly in the UK”, over the second half of 2024. Elsewhere, the group’s beauty business saw sales dip 1.3% for the latest quarter but were up 0.8% accounting for currency rates.
It reported growth across the skin, cosmetics and fragrance categories in the UK. Matthew Moulding, chief executive of THG, said: “I’m impressed by the group’s agility and resilience during a year of significant change for THG, ranging from the demerger of our Ingenuity business, to the sale or discontinuation of some non-core business units, and a major global rebrand of Myprotein in nutrition.
