THG PLC on Tuesday reported continued sales momentum in its first quarter, with its Beauty division driving revenue.

The Manchester-based e-commerce platform said revenue in the three months to March 31 dipped 2.0% to £459.9 million, from £469.4 million a year ago.

However, THG noted that its Beauty division performed strongly, with its sales rising by 5.4% to £267.6 million, compared to £253.9 million the year before. This was due to ‘targeted changes to geographic strategy through 2023, focusing on more profitable customers and territories closest to our global distribution hubs,’ the firm explained.

Looking ahead, the firm said its full-year expectations and medium term guidance remain unchanged and expects a return to 9% adjusted earnings before interest, tax, depreciation and amortisation margins in the medium term.

It also anticipates revenue growth in its first half to be in the range of 2.0% to 5.0%. In the first half of 2023, THG reported revenue of £538.7 million.

Chief Executive Officer Matthew Moulding: ‘Following the group’s return to revenue growth in [the fourth quarter of 2023], it’s pleasing to report an acceleration in [the first quater], which is testament to the hard work and dedication of our people, who’ve remained focused on the task in hand despite the tough macro-economic backdrop.

‘It’s also clear that the accelerated infrastructure investments made during 2019-2022, specifically into our fulfilment network and tech capabilities, are playing a significant part in delivering competitive advantage. With this major capex program behind us, these investments will continue delivering meaningful savings, which accelerate further as new Ingenuity partners are onboarded.’

Shares in THG were up 4.3% to 64.69 pence each in London on Tuesday.

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