From its Manchester headquarters, THG Plc drives online retail in health and wellness, focusing on beauty and nutrition products for a global audience. Operating in the e-commerce industry, specifically within beauty, nutrition, and wellness retail, the company leverages its digital expertise to sell directly to consumers, managing brands like Lookfantastic, Cult Beauty, and Myprotein across more than 140 countries.
THG generates revenue through direct-to-consumer sales and strategic partnerships. Its Beauty division, which includes skincare, cosmetics, and fragrances, sells products online and through subscription models like the Lookfantastic loyalty scheme, boasting 2.8 million members by early 2025. The Nutrition division, led by Myprotein, offers sports supplements and has expanded offline through licensing agreements, with offline sales up 29% in 2024. THG charges customers per product, a Myprotein protein tub might cost £30, while a luxury skincare item from Lookfantastic could fetch £50. Additionally, the company earns through partnerships, such as licensing deals for Myprotein, and by providing fulfilment services post the 2024 demerger of its Ingenuity technology division. In 2024, THG reported revenues of £1.75 billion, down 6.8% from £1.88 billion in 2023, with a widened pre-tax loss of £202.4 million due to a deferred tax asset write-down and the demerger’s impact.
Strategically, THG has streamlined operations, exiting non-profitable categories and focusing on high-margin markets. The Ingenuity demerger, completed in 2024, alongside a £90 million equity fundraise, including £60 million from CEO Matthew Moulding, and debt refinancing, reduced net debt from 3.2x to 2.2x adjusted EBITDA. However, challenges persist, the Myprotein rebrand led to a 12% revenue drop in the Nutrition division in 2024, exacerbated by weaker online sales and a one-off stock clearance. Economic pressures, particularly in Asia, and global market uncertainty have also impacted performance, with first-quarter 2025 revenue falling 6.7% to £371.4 million. Employing around 7,000 people, THG anticipates profit margin improvements in late 2025, but its reliance on consumer spending in a volatile economy raises concerns about sustained recovery.
THG’s digital-first approach and brand strength offer growth potential, but its aggressive restructuring and market challenges highlight risks that could undermine its long-term stability.
I was a fund manager when this listed on the stock market and was in an IPO meeting. It contained a page that, if you looked hard enough, effectively stated that it paid about ten people an awful lot of money simply for listing, including about £650m to the CEO. I was horrified. The share price since listing has been a disaster. It’s feasible that there is a decent business in here but I’m not interested in looking for it.
Funnily enough, I can’t find the IPO presentation document that contained this nugget on the website anymore. I used to sit next to an analyst that would say of particularly bad companies,
I wouldn’t touch that with the blunt end of a rag man’s trumpet
That pretty much sums up my attitude towards this one.
This is not a company made for shareholder wealth.
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