THG Beauty drives revenue as MyProtein faces setbacks in FY 2024
THG has reported a 5% drop in total revenue to £1.94bn for FY 2024, although it remains confident of meeting its full-year expectations.
THG has reported a 5% drop in total revenue to £1.94bn for FY 2024, although it remains confident of meeting its full-year expectations.
The company’s Beauty division, which includes brands like Lookfantastic and Cult Beauty, saw strong growth, with revenue increasing 4.6% to £1.1bn. This was driven by a solid performance in both skincare and fragrance, with fragrance sales up 32% during peak trading.
In contrast, THG’s Nutrition arm, which includes MyProtein, faced challenges, with sales falling 8.7% to £579.8m. The decline was attributed to a rebranding initiative and one-off promotional activites aimed at clearing legacy stock.
However, the business pointed to the ongoing recovery in both its online and offline channels, with strong retail partnerships providing a boost. Notably, MyProtein also benefitted from a successful rebrand and a push into new product categories.
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CEO Matt Moulding: “I’m impressed by the Group’s agility and resilience during a year of significant change for THG, ranging from the demerger of our Ingenuity business, to the sale or discontinuation of some non-core business units, and a major global rebrand of MyProtein in Nutrition.
“Our Beauty business had a standout year, underpinned by strong performances in the UK and US. The continued success of our customer loyalty and reward program, and the opening of our first-ever Lookfantastic physical store, further cement our leadership position in the global Beauty market. These achievements demonstrated significant progress against our strategic priorities and set the stage for an even more remarkable 2025.”
He continued, “Despite the transitory headwinds, MyProtein achieved several notable successes: entry into the dairy market through the launch of a long-term partnership with Müller; the commencement of a co-manufacturing relationship in Japan; the expansion of our Iceland partnership, and many other licensing and retail listing agreements. We are excited to further deepen our retail expansion strategy internationally in the forthcoming year.”
Looking ahead, THG expects mid-single-digit revenue growth in FY 2025, with a return to growth in its Nutrition division and continued strength in Beauty. The company also plans to focus on expanding its omnichannel strategy and increasing its international retail footprint.
Earlier this month, the business rejected an unsolicited £400m-plus takeover offer for MyProtein from investment vehicle Selkirk, calling the bid “undervalued.”
It called the offer was largely unfunded and highly conditional, with the THG board confident in MyProtein’s long-term prospects following its strategic initiatives.
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