THG Share Price Rallied 10% on the Upbeat Q3 ’23 Trading Update

The THG PLC (LON: THG) share price rallied 10% after announcing its trading results for the three months to 30 September 2023 and the nine months to the same date. The company reported its best quarterly performance in Q3 despite its group's continuing revenues falling 4.4% to £466.5 million.

The company also noted that its performance during each month of the third quarter improved, allowing it to return to constant currency (CCY) growth in September, where its revenues surged 3.2% on a CCY basis despite an overall decline of 0.3%. The firm also maintained its full-year revenue target of 0% – 5%. 

THG noted that all its divisions were making notable progress in alignment with its stated strategy to achieve sales growth and bolster margins.

THG Beauty: The challenges posed by global de-stocking in THG’s beauty manufacturing business have eased, paving the way for THG Beauty's return to growth in September (+1.7%, +5.1% at constant currency rates). 

The resurgence can be attributed to the strategic shift towards higher-margin sales and a reduction in orders that do not yield an immediate return, resulting in a considerably improved Q3 margin performance.

THG Nutrition: Despite a temporary reduction in new product launches during the rebrand launch, THG Nutrition delivered an all-time high Q3 adjusted EBITDA. This achievement stems from the benefits reaped from the investment in pricing strategy made during peak inflation.

THG Ingenuity: While sales cycles in the Enterprise sector have been somewhat longer than anticipated, there is evident progress reflected in September's sales performance (-2.3%) compared to H1 (-14.9%). 

The increase in active UK customers within THG Beauty and THG Nutrition results from investments in the customer proposition, including extended next-day delivery cutoffs and the quickest-ever UK delivery times.

Matthew Moulding, THG’s CEO, commented: “Q3 has been another strong quarter of progress across the Group, with each division delivering improved performances. The pivots made within each division to ensure they thrive in a high-inflation global environment are bearing fruit. The momentum with which we exited Q3 was especially pleasing, with the Group returning to positive constant currency revenue growth of +3.2% in September, driven by a strong performance across our Beauty division.

THG share price. 

The THG share price rallied 10.04% to trade at 73.4p, from Monday’s closing price of 66.7p.