Shares in THG, the owner of MyProtein and Cult Beauty, plunged by 30% on Wednesday after the company reported a slump in sales. The online retailer's annual revenue fell 8.7% to £2bn, although it returned to growth in the final quarter of 2023.
The company's pre-tax losses halved from £549.7m to £252m, driven by cost-cutting and automation. However, all divisions – nutrition, beauty, and Ingenuity – suffered revenue declines over the year. The UK accounted for 45.8% of sales, up from 42.9%, making it a key growth market.
CEO Matthew Moulding said: 'In 2023, we made material progress against our strategic priorities, delivering significant profit growth following the support for our consumers through the cost-of-living crisis in 2022.' He added that the return to growth in Q4 was 'especially pleasing' and that momentum had continued into 2024.
The company also cut around 2,500 jobs in 2022 and 2023. Last year, private equity firm Apollo expressed interest in taking THG private, but talks collapsed after a month. Moulding later gave up his veto power over any takeover, addressing a key shareholder governance concern.
