THG trading on target after Ingenuity split
THG, the company behind fitness supplement brand Myprotein, has reported its first trading update after the group split in two earlier this year.
The company told the market this morning that adjusted earnings before interest, tax, deprecation and amortisation (EBITDA) for 2024 are expected to align with consensus expectations.
At the beginning of January, THG demerged Ingenuity, its tech and distribution business into a new private entity. City PM is part of the Ingenuity private business.
The remaining brands, which sit under the THG Beauty and THG Nutrition divisions, recorded a decline in sales of five per cent in the fourth quarter of 2024.
For the full year, the company said revenue at the THG brands declined 2.5 per cent overall.
However, revenue at the now external THG Ingenuity arm rose 22.9 per cent in the fourth quarter and 15.9 per cent for the full year.
THG said sales were boosted by a standout performance from THG Beauty but held back by promotional activity at THG Nutrition, where “promotional activity in support of the rebrand was elevated to clear old brand stock.”
Matthew Moulding, CEO of THG commented: “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.
“Our Beauty business had a standout year, underpinned by strong performances in the UK and US. The continued success of our customer loyalty and reward program, and the opening of our first-ever Lookfantastic physical store, further cement our leadership position in the global Beauty market. These achievements demonstrated significant progress against our strategic priorities and set the stage for an even more remarkable 2025.
“Despite the transitory headwinds, Myprotein achieved several notable successes: entry into the dairy market through the launch of a long-term partnership with Müller; the commencement of a co-manufacturing relationship in Japan, the expansion of our Iceland partnership, and many other licensing and retail listing agreements. We are excited to further deepen our retail expansion strategy internationally in the forthcoming year.
“I would like to thank everyone involved at THG for their immense efforts during a transformative year for the business. I’m looking forward to further strong progress in 2025.”