THG expects significant increase in first half profitability
THG has said it expects to announce a significant increase in first half profitability following a strong second quarter.
In an update ahead of its AGM later today, the company attributed the success to a continued focus on profitability and cash generation.
THG is expecting first half adjusted EBITDA to be in the range of £44 million to £47 million compared to £32.3 million in the first half of the prior year, although its guidance for the full year remains unchanged.
The company said: “THG Nutrition has had a particularly strong start to the year, with the pricing decision to support consumers through exceptional market-wide inflationary conditions in FY 2022 now paying dividends. Commodity prices continue to ease, with further margin benefits expected in H2 2023.
“In THG Beauty, our online retail platforms have focussed on profitable sales in markets where our localised infrastructure can deliver economies of scale. We expect further sales momentum in the second half of the year, supported by beauty manufacturing as the temporary industry-wide de-stocking comes to an end.”
THG has also announced that it has appointed Helen Jones as a non-executive director.
Having embarked on her portfolio career in 2014, Jones is currently chair of the remuneration committee at Premier Foods, Virgin Wines and Fuller, Smith and Turner. She also acts as the workforce engagement non-executive director for Premier Foods and Fuller, Smith and Turner, and is a senior independent director at Halfords.
Jones previously enjoyed a long career building premium food and beverage brands across FMCG and multi-site hospitality. This included working as group executive director of Caffe Nero, managing director of Zizzi, and director of brand development for Europe at Ben & Jerry’s.
In 2021, she stepped down as vice chair of the Ben & Jerry’s board of directors USA.
Charles Allen, chair of THG, said: “I would like to welcome Helen to the business. She brings with her a successful career across the FMCG industry, with a notable reputation for delivering results and leadership in cultural change programmes.
“This appointment reinforces the board’s commitment to improve its corporate governance and continually enhance its composition.”
