RE: OVMK quarterly update9 Oct 2024 21:53
Thanks 1pencil for finding the quarterly up-date. Here is the Google Translate version . Hopefully not too much is lost in translation….
“Over the last three years, we have paid a lot of attention to THG Plc. THG came to the company on 17 September. with results for the first half of the year and unfortunately they were disappointing. In the healthy food division, there were strong headwinds from the weak Yen and the repositioning of the brands. The cosmetics division did well. THG announced its intention to separate the marketing (Ingenuity) division from the other two divisions in order to retain a strong cash-generating core. While this is a good plan to bring out the true value of the divisions, we believe it will only have real substance if another investor joins the group. To date, THG has kept all possible bidders for (parts of) the company away because THG wants to retain control. It must be said that this has not yet led to the valuations of the current group that we had in mind at the beginning of the investment in '21 in mind. However, things could have turned out differently when Apollo Private equity was very close to a deal in 2023.
The group is working relentlessly to strengthen its brands and we will have to wait and see when that will bear fruit. We have the feeling that management is finally keen to show the market that it is wrong. Since there are now concrete plans to split up the group and the THG core group (Nutrition and Beauty) will also go to the main index in England, these are certainly developments that stand out.”
