Business
Interim results for the half-year ended 30 June 23
Interim results for the half-year ended 30 June 23.
About this update from Thg Plc
[{"type":"text","content":"\n\n14 September 2023\n \nTHG PLC\nInterim results for the half-year ended 30 June 2023\n \nAdjusted EBITDA and cash generation ahead of guidance in H1 2023\nFull year adjusted EBITDA guidance reiterated\n \n \n· Continuing[1] adjusted EBITDA of £50.1m (+22.9%), above the top end of guidance (£47m to £50m), at a margin of 5.3% (H1 2022: 4.0%). Adjusted EBITDA guidance unchanged for FY 2023.\n· Adjusted EBITDA of £47.1m (+45.7%), inclusive of recently disposed loss-making OnDemand business.\n· Successful exit of loss-making discontinued categories and non-core assets generated a one-off non-cash charge of £26.2m[2], increasing the operating loss to £99.5m (H1 2022: £89.2m). Without this charge, operating loss improved by £15.9m YoY.\n· Strong LTM[3] cash performance, ahead of guidance. LTM cash outflow[4] of £20.6m is after £163.1m of capex, mainly in THG Ingenuity. This represents a £350m cash performance improvement on the LTM year on year.\n· Strong balance sheet with £563m of cash and available facilities.\n· Record H1 THG Nutrition revenue of £340.7m (+2.6%), with adjusted EBITDA of £47.1m (+71.9%).\n· THG Beauty adjusted EBITDA of £10.6m (H1 2022: £17.7m), impacted by one-off industry de-stocking in manufacturing. Excluding manufacturing THG Beauty adjusted EBITDA was £9.7m (H1 2022: £7.3m). Encouragingly, since the start of August, the Beauty division has returned to growth.\n· THG Ingenuity listed in the Gartner's Magic Quadrant™ for Digital Commerce. Continued focus on the Enterprise strategy with new client wins secured (including L'Oréal US prestige brands) and a strengthening pipeline.\n· Continued prioritisation on gross margin and adjusted EBITDA margin growth.\n· Q3 revenue exit momentum gives us confidence in full year continuing revenue growth of 0% to -5% (H1 2023: -6.1%).\n \n \nMatthew Moulding, CEO of THG, commented:\n \n\"Inflationary pressures provided significant challenges to consumers and businesses alike over the past 18 months. Our strategy of supporting our consumers throu...