RE: Overtime24 Apr 2024 07:28
THG has been boosted by a strong performance from its beauty business as the group presses ahead with efforts to revive its stock market valuation.
Revenues in THG’s beauty division beat City expectations with a rise of 9.3 per cent to £267.6 million in the three months to March 31, prompting the group’s share price to rise by 3p, or 4.8 per cent, to 65p.
THG, formerly known as The Hut Group, was founded by the entrepreneur Matt Moulding in 2004 and floated on the stock exchange at a valuation of £5.4 billion in 2020. THG’s market capitalisation now stands at about £870 million and the company has been seeking to boost its share price by addressing corporate governance concerns and cutting costs.
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wednesday april 24 2024
THG boosted by beauty as it looks to revive share price
Cosmetics division beats City forecasts with a rise in revenue of 9.3 per cent
Matthew Moulding, founder and CEO of THG, has come under pressure from activist investors
Matthew Moulding, founder and CEO of THG, has come under pressure from activist investors
REUTERS
Helen Cahill
Wednesday April 24 2024, 12.01am, The Times
THG has been boosted by a strong performance from its beauty business as the group presses ahead with efforts to revive its stock market valuation.
Revenues in THG’s beauty division beat City expectations with a rise of 9.3 per cent to £267.6 million in the three months to March 31, prompting the group’s share price to rise by 3p, or 4.8 per cent, to 65p.
THG, formerly known as The Hut Group, was founded by the entrepreneur Matt Moulding in 2004 and floated on the stock exchange at a valuation of £5.4 billion in 2020. THG’s market capitalisation now stands at about £870 million and the company has been seeking to boost its share price by addressing corporate governance concerns and cutting costs.
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Revenues at Ingenuity, its e-commerce platform hosting third-party brands, fell by 5.3 per cent to £149.6 million, as sales to clients rose by 4.1 per cent to £37 million, whilesales to its own divisions declined 8 per cent to £112.6 million. The group’s total revenue fell by 2 per cent to £459.9 million.
THG’s nutrition business, the division responsible for its popular Myprotein brand, fell by 9 per cent to £150.8 million. The group has started distributing its Myprotein products to UK retailers such as Asda, Boots and Tesco, and started selling the brand in an additional 1,000 stores in the first quarter. The nutrition division’s sales were held back by the roll-out of a new Myprotein brand, but Moulding said customers were responding well to the changes.
Moulding has come under pressure from activist investors to spin-off the Myprotein business to improve THG’s valuation. Kelso, an investment group founded by John Goold, has called for a sale of THG’s