THG says profitability improving, appoints independent non-exec director

UK-based e-commerce group THG said Wednesday it expects “a significant increase in H1 2023 profitability” following a “strong Q2 2023, with a continued successful focus on profitability and cash generation”.

It said it expects H1 adjusted EBITDA in the range of 44 million pounds to 47 million pounds, up from 32.3 million pounds the prior year, and continuing adjusted EBITDA in the range of 47 million pounds and 50 million pounds.

It added that its full-year guidance remains the same.

The group said its nutrition segment had a “particularly strong start to the year”, while its beauty segment expects “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”.

‘Good progress’ at Ingenuity

THG Ingenuity, the technology services division of THG, “continues to make good progress on building its client base across higher value enterprise accounts and its network of global strategic alliances”.

It said Ingenuity remains on track to add 1 billion pounds of incremental GMV to the platform across technology, digital and operational services during FY 2023.

THG has faced a slew of difficulties in recent years with its stock price falling sharply due to profit warnings, corporate governance concerns, and failed takeovers deals.

In May, the group announced the termination of its acquisition discussions with Apollo Global Management, stating that Apollo had undervalued the group.

In July 2022, THG announced the end of an investment deal with Japanese investment giant Softbank, citing “global macroeconomic conditions”.

THG also announced Wednesday that founder and CEO Matthew Moulding has given up his ‘golden share’, which gave him greater voting powers over the business.

The decision to give up his special voting rights was first announced by THG in 2021. At the time, the group said the move would improve “good corporate governance”, and “facilitate” its application to step up to the premium segment of the main market of the London Stock Exchange.

New board appointment

THG also announced Wednesday that Helen Jones has been appointed as an independent non-executive director.

Jones is currently a senior independent director at Halfords Group, and was also previously vice chair of the Ben & Jerry’s independent board of directors USA.

Separately, Iain McDonald is stepping down from THG’s Remuneration Committee “to focus on his other THG commitments, primarily as chair of the Sustainability Committee and member of the Nomination Committee”.