THG PLC on Tuesday reported lower revenue in the fourth quarter of last year, but it expects a jump in annual earnings and celebrated a new partnership with a long-established health food store chain.
THG, a Manchester-based e-commerce platform, said revenue fell 7.1% annually to £607.8 million in the fourth quarter of 2023.
For all of 2023, revenue was down 8.7% to £2.04 billion from £2.24 billion in 2022.
Continuing revenue declined 1.0% in the final quarter of 2023 to £597.9 million and was 3.3% lower in 2023 at £1.99 billion.
Despite the revenue decline, THG expects 2023 continuing-operations adjusted earnings before interest, tax, depreciation and amortisation of more than £117 million, up 32% from £88.9 million in 2022, and for group adjusted Ebitda to jump 75% annually from 2022’s £64.1 million.
THG also announced new and expanded partnerships with Holland & Barrett via THG Ingenuity, which it said will contribute around £175 million to gross merchandise value during 2024.
From the second quarter of 2024, UK-based wellness retailer Holland & Barrett will utilise THG’s automated facilities in the UK. The planned partnership is subject to an ongoing employee consultation process at THG.
THG shares were up 10% to 74.00 pence each on Tuesday morning in London.
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