THG has delivered its strongest quarter of growth in almost four years as signs of a turnaround at the online retailer begin to gather pace.
Revenue grew 6.3% to £405.2m in the period to 30 September, building on a small rise in the previous quarter after five consecutive quarters of falling sales.
It comes off the back of THG’s return to the FTSE 250 last month after an upgrade by JP Morgan sent its share price flying.
CEO Matt Moulding has sought to simplify the company by demerging its Ingenuity platform in January and selling Claremont Ingredients for £103m in August.
Its growth is now being driven by double-digit growth in THG Nutrition, as well as consistent momentum in its beauty business which delivered its strongest performance since the first quarter of last year.
Its nutrition arm, based around Myprotein, is expanding globally with a major focus on the US and the Middle East.
“Within THG Nutrition, we remain on track with our focus on expanding Myprotein’s D2C market share, alongside accelerating our global offline presence through retail and brand partnerships,” said Moulding.
“A number of exciting new partnerships are set to be announced soon, helping us to further build on this year’s positive momentum.”
In an analyst note announcing its rating upgrade last month, JP Morgan said: “We see the tide turning post a period of strategic evolvement.
“Strategically, the THG Ingenuity demerger has focused management on core operations, and together with recent disposals (Claremont)…we see an improved balance sheet position.”
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