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Matt’s doing a great job and has done guiding THG thru the pandemic and cost of living crisis. THG has held on to its COVID growth and more. Fantastic leadership.
Look forward to the SP correcting itself as pension funds decide to pour back into equities.
"BofA sees reasons for optimism in all three core divisions.
In addition to a return to positive growth in August, the Beauty division should see improved margins in the second half of the financial year as the margin-accretive manufacturing business ramps back up following destocking throughout much of 2022 and 2023.
BofA thinks current prices, input costs should remain a tailwind for the Nutrition division for the second half of the financial year and beyond, allowing the flexibility to re-invest in pricing to drive growth.
Ingenuity's strategic shift continues as THG exits smaller, less profitable contracts leaving it on track to add £1 billion gross merchandise value in new contracts in the financial year."
Think BoA is being conservative.
Well I’m ready to be led into the sunlit uplands by our founder and entrepreneurial megastar MM.Keep expanding Nutrition and all will come good.
Quiet from Manc this morning. Guarantee he’ll be back. No doubt busy in his fantasy COO role.
The strategy is to grow the business like most other businesses.
The incessant bleating calls for a 'strategy update' on this board is the fast cash investors like you looking for a quick buck by THG selling off the crown jewels.
The macro is changing and there are lots of tailwinds and costs dropping out. H2 will be much improved again.
Ingenuity had £120m of revenue drop out due to Ondemand and ProBike diposals and was clearly guided.
"Mainly reflecting the change in strategy to reduce low-margin sales, THG Beauty sales declined 10.4% to £538.7m. THG Beauty delivered Adjusted EBITDA of £10.6m (H1 2022: £17.7m) with a margin of 2.0% (H1 2022: 2.9%), being a 90bps reduction on H1 2022. The reduction in margin is ENTIRELY DRIVEN by the lower sales within THG Beauty manufacturing, resulting from a one-time destocking across the Beauty industry. The Adjusted EBITDA in THG Beauty manufacturing has declined by £9.5m compared to H1 2022. Excluding this result, Adjusted EBITDA margin would have improved by 60bps. We expect this destocking activity to be short-term in nature, and anticipate a return to previously achieved margins in the medium-term.
Our prestige online retailing and THG owned-brands continue to perform strongly, despite the challenging backdrop, benefitting from the growth within the prestige beauty market alongside the continued trend of digital channel shift and THG Ingenuity platform services.
AOV's continue to increase totalling £62 per basket for 2023 (H1 2022: £61), arising from a focus on customer loyalty (with the launch of LF Beauty+) and continued investment to drive increased customer engagement in both third party and THG own brands."
Margins to normalise.
"Our Nutrition division delivered a record H1 revenue performance and, with inflationary pressures easing, posted substantially higher EBITDA margins year-on-year as we exited H1. The early results from the Myprotein rebrand are also encouraging as we've taken steps to further enhance the premium nature of the world's No1 online sports nutrition brand. These actions should provide for both increased partnership opportunities and category expansion, supporting our ambition of building Myprotein into a global lifestyle brand."
Just keep growing Nutrition for us long term holders.
"The cash performance of the Group has been strong in H1, but also over the last 12 months. Group cash flow performance improved by £350m compared to the previous 12 months, reflecting the completion of our global infrastructure roll-out program, with the Group now achieving significant operating leverage from a well invested, automated, global platform."
That's £350m!!!!!!!!! and reduced Capex going forward.
" I don't trade shares as I have a full time job as a COO."
But you have time to post here from early morning to evening throughout the week and at weekends? Pull the other one.
Post your sells tomorrow before you hit the execute. But you won't because you hold f all.
Busted.
My guess is Ste2000? Part of the short brigade along with the numbskull from hull.
And I'm not answering anything to you pal,just read the info from the RNS and MM's summation on LinkedIn.
It's not a list of 'great things', it is verbatim from the RNS.
"As a first party data collector across a broad set of sectors and locales, Ingenuity is uniquely positioned to deliver AI solutions to drive cost efficiencies, innovative customer experience and incremental revenue opportunities including the use of Generative AI technology infused directly into the Ingenuity platform."
You want to talk about multiple accounts and 'squads' then your long history of running down THG should be top of the list.You selling on Monday as well haha??
O Maximo Group: Major sites All Beauty and Fragrance Direct migrated to the Ingenuity platform in Q2. Operational services including fulfilment now activated, with mobile app and subscription programme launching this year.
· As a thought leader for digital commerce, ongoing innovation and platform enhancement is imperative to success. Through in house development of machine learning models, our ability to hyper personalise how we segment customers and tailor their site experience is constantly evolving. As a first party data collector across a broad set of sectors and locales, Ingenuity is uniquely positioned to deliver AI solutions to drive cost efficiencies, innovative customer experience and incremental revenue opportunities including the use of Generative AI technology infused directly into the Ingenuity platform.
· The Group executed its plan of business simplification and operations streamlining with the full exit of both OnDemand and ProBikeKit for consideration of c.£4 million.
Strategic and operational highlights
· Active customers in THG Beauty (LTM: 8.6m, -10%) and THG Nutrition (LTM: 6.8m, -5%), reflects the strategic decision to deploy marketing investment in more profitable territories.
· App participation continues to build with orders representing 17.0% of Group D2C H1 2023 revenue (H1 2022: 11.4%), strengthening customer engagement and loyalty to our brands.
· Encouraging purchasing behaviour from existing THG Beauty and THG Nutrition customers continues, with stable order frequencies, average order values ("AOV"), and consistently strong repeat purchase rates of over 80%. Momentum has built throughout the half with active customers +5% in Q2 vs Q1 2023. Overall 3-year active customer growth +62% and 29% for THG Beauty and THG Nutrition respectively.
· THG Beauty continues to execute its market prioritisation strategy, whilst delivering UK online premium market share growth of c.4% to c.28% for Lookfantastic[12], supported by record high Trustpilot scores for Lookfantastic and Cult Beauty.
· Following double-digit revenue growth for the two largest brands in H1, THG Beauty's prestige own brand portfolio is set to achieve further international recognition through a global licensing partnership with luxury hotel amenities supplier Vanity Group launching in 2024.
· THG Nutrition continues to expand into adjacent markets through localisation and collaboration with major brands and influencers to amplify brand awareness. Following category expansion within the licensing partnership with Iceland, Myprotein is also set to partner with global confectionary brand Chupa Chups and global spirits brand Southern Comfort to broaden flavour options across the product portfolio.
· THG Ingenuity: Substantial progress has been made on the ongoing strategy to partner with larger, higher value enterprise clients with high-quality recurring revenues, and for the first time, has been recognised in the Gartner Magic Quadrant™ for Digital Commerce.
· New and expanded partnerships agreed year to date include:
o L'Oréal Group: Powering D2C operations for two of L'Oréal's most prestigious brands; "Shu Uemura Art of Beauty" in the USA and Canada, and "Biotherm" in the USA.
o L-Fashion Group: USA site launch for the European apparel specialist, launching Rukka Pets in their next global expansion market.
o Matalan: Following their ecommerce platform migration, Matalan have commissioned a purpose-built environment for rapid production of their ecommerce photography at ICON studios.
o Asda Stores Ltd: Expanding digital services partnership to provide digital content and performance marketing for their Mobile division in addition to existing food packaging and social media content. As one of their Digital agencies across their Grocery, Money and Mobile divisions, the partnership has more than doubled in scale.