THG's H1 revenues grow, mulls demerger of Ingenuity

THG Group revenue of 911.1 million pounds, increased by 2.2 percent in the first six month period, with 6 percent growth in beauty and external Ingenuity helping offset online nutrition. The company’s UK revenues grew strongly by 9.9 percent.

As a part of THG's stated strategy to maximise shareholder value, the group is actively undertaking detailed work to facilitate the demerger of THG Ingenuity. The company said that post a demerger, the group would consist of THG beauty and THG nutrition, which are highly profitable, cash generative and capable of paying dividends.

Commenting on the first half trading, Matthew Moulding, CEO of THG, said in a statement: "Reporting another six-month period of continuing sales and adjusted EBITDA growth was especially pleasing given the FX headwinds suffered within our nutrition business, which negatively impacted profitability by a further 5 million pounds.”

"Finally, after extensive discussions with shareholders over the past 12 months, THG is progressing options to demerge THG Ingenuity, leaving our highly profitable and cash generative global beauty and nutrition businesses within THG PLC," added Moulding.

THG estimates beauty and Ingenuity to deliver adjusted EBITDA margin progression for the full year, with Ingenuity adjusted EBITDA anticipated to be ahead of market expectations, noting the strong H1 performance and the new customer wins in the third quarter.