RNS25 Oct 2022 08:12
Tue, 25th Oct 2022 07:00
RNS Number : 9473D
THG PLC
25 October 2022
25 October 2022
THG PLC
Third quarter trading statement for the period ended 30 September 2022
Q3 2022 Group revenue growth of +2.1% YoY, and +3.8% across Beauty, Nutrition and Ingenuity
+10.2% YoY Beauty and Nutrition revenue growth in core territories[1] with localised infrastructure
Full year revenue, adjusted EBITDA and cash guidance unchanged
THG PLC ("THG" or the "Group"), the proprietary technology platform specialising in taking brands direct to consumers ("D2C") globally, announces its third quarter trading update for the period ended 30 September 2022 ("third quarter" or "Q3 2022").
Q3 2022 highlights
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THG Beauty and THG Nutrition core territories delivered revenue growth of +10.2%, ahead of the Group growth rate overall of +2.1%.
·
Growth of +4.9% and +2.9% in THG Beauty and THG Nutrition respectively reflects continued share gains in strategic markets.
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Consumer behaviour during the third quarter remained stable and consistent, reflecting the resilience of beauty, health and wellness categories, with:
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stable Average Order Values ("AOVs");
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repeat rates in line with the first half; and
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growth in new customers acquired through Apps continuing to drive higher AOVs and order frequency vs non-app sales.
·
THG Ingenuity re-positioned under CEO Vivek Ganotra to focus on larger, higher contract value clients, leveraging the Group's proprietary technology platform and end-to-end proposition. Ingenuity has a strong and growing pipeline of these opportunities in addition to expanding propositions across the existing client base.
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Dilutive revenues across THG OnDemand and Other divisions scaled back in territories awaiting delivery of localised personalisation infrastructure.
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Positive start to Q4 with momentum expected to accelerate as the Group enters its peak trading period.
Additional new banking facilities and guidance
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The key terms of the recently signed incremental £156 million banking facility, provided equally by existing lenders, BNP Paribas, HSBC, and NatWest, include:
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three-year term;
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pari passu ranking with the Group's existing term loan B;
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no additional covenants; and
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350 bps fixed margin above SONIA.
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All debt facilities are covenant light, long-dated (Term Loan B, December 2026) with fully fixed and hedged interest costs.
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Group stock levels are normalising following the recent completion of the global logistics roll-out program, resulting in a steady unwind of the working capital investment made in the previous two years.
·
YTD Group revenue growth of +8.8% (+9.9% across Beauty, Nutrition and Ingenuity) is in line with expectations, supporting FY 2022 revenu
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