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Fourth quarter trading statement
12-01-2021
THG products - protein and beauty products

Q4 2020 revenue growth of +51% YoY outperforms previous guidance of +40% to +45%

Group revenue growth accelerated in Q4 2020 vs Q3 2020, with an especially strong performance in THG Beauty and increasing momentum in Ingenuity Commerce contract wins

FY 2021 revenue growth guidance raised to +30% to +35%

THG plc (“THG” or the “Group”), the global technology platform specialising in taking brands direct to consumers (“D2C”), announces its trading update for the three months ended 31 December 2020 (“Q4”).

Q4 2020 Group Trading Performance

 

 

Revenue
Q4 2020
£m

Revenue
Q4 2019
£m

Revenue
Q4 2020
Growth

Revenue
Q3 2020
Growth

Revenue
H1 2020
Growth

Revenue
FY 2020
£m

Revenue
FY 2019
£m

Revenue
FY
Growth

THG Beauty

298.2

179.4

+66.2%

+45.0%

+55.4%

751.3

478.3

+57.1%

THG Nutrition

158.2

113.4

+39.6%

+42.8%

+30.5%

561.6

412.9

+36.0%

THG OnDemand⁽¹⁾

42.4

23.4

+80.9%

+79.6%

+58.1%

102.9

59.9

+71.9%

THG Ingenuity

40.3

34.7

+16.0%

+10.1%

+0.6%

137.1

127.9

+7.2%

Other

19.7

19.1

+3.2%

(7.0)%

(4.4)%

59.5

61.2

(2.8)%

 

        

Group Sales

558.7

370.0

+51.0%

+38.7%

+35.8%

1,612.5

1,140.2

+41.4%

 

        

Memo:

 

 

      

D2C Online Revenue

468.8

303.8

+54.3%

+51.3%

+47.8%

1,361.8

903.0

+50.8%

Ingenuity Commerce

7.3

3.0

+144.0%

+171.4%

+171.6%

19.3

7.4

+160.4%


(1)   THG Lifestyle has been renamed THG OnDemand to reflect the evolution of its model from purely a retailer of lifestyle products into a personalised, often licensed and subscription based, print on-demand retailing model.



Q4 2020 highlights
 


FY21 outlook & guidance

In the recent trading update on 7th December 2020, medium-term revenue guidance was reiterated at +20% to +25%. On 29th December 2020, THG announced the acquisition of Dermstore.com, with anti-trust approval expected during January 2021.

Following the strong momentum with which THG has finished 2020, along with the expected contribution from Dermstore.com, management now expects FY 2021 revenue growth to be between +30% and +35% ahead of FY 2020.

Ingenuity Commerce contracts update

Following a range of contract wins announced in the 7th December 2020 Trading Update, THG Ingenuity Commerce today announces a further selection of D2C and trade partnerships within the beauty and consumer verticals.

New business pipeline conversion continued at pace throughout 2020. Whilst new project implementations tend to be phased to avoid the peak trading period, the growth rate for Ingenuity Commerce revenue of +144.0% in Q4, plus the combination of recent contract wins and the current new business pipeline, provide a great deal of confidence and visibility for the new financial year. Growth will be supported by the investments made into the Business Development structure which increased from 5 to 54 employees through the year.


Beauty
 


Brand and Consumer
 


Matthew Moulding, Executive Chairman and CEO commented:

“I am pleased to report another strong performance through Q4 2020, during what has been a transformational year for THG. Due to the focus and dedication of our rapidly growing global workforce we have delivered some significant milestones in 2020.

“Following our successful listing on the London Stock Exchange in September 2020, we have accelerated our sales growth across all areas of the Group, underpinned by record new customer numbers. We have also started reinvesting capital raised at IPO, including over £360m in M&A, principally within the US beauty sector.

“Furthermore, we have also invested significantly in our people, creating 3,000 new jobs during 2020, largely within the U.K, but also across our international operations. During 2020, we have made significant progress in commercialising our Ingenuity Platform, fast becoming a major global player in taking brands direct to consumers.

“Each of these milestones further underpin THG’s strategic growth pillars outlined at IPO, giving management significant confidence when looking ahead to 2021 and beyond, and driving the increase in our guidance for the year ahead.

“I would like to thank all our dedicated colleagues who have risen to the challenge to deliver such a strong performance in difficult and unprecedented global circumstances.”

ENDS