THG PLC (LSE:THG) has reported accelerated revenue growth over the first quarter as sales continue to improve after sweeping changes made last year, though sales continued to lag for some parts of the business.
Continuing revenue for the online cosmetics and nutrition retailer was up 2.1% at £455.4 million, or by 4.5% on a constant currency basis, over the three months to March, according to a statement on Tuesday, up from 1.1% in the final quarter of last year and negative territory earlier last year.
This was fuelled by an 11.1% uptick within its beauty division at constant currency, as sales dipped 5.8% and 4.9% respectively from THG's nutrition and its Ingenuity e-commerce solutions businesses.
“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,” chief executive Matthew Moulding said.
Revenue from nutrition product sales was held back by availability gaps as ranges transition to the new branding, plus the devaluation of the Japanese yen, THG said.
“With this major capex program behind us, these investments will continue delivering meaningful savings, which accelerate further as new Ingenuity partners are onboarded,” Moulding added.
THG said it continued to monitor the situation in the Middle East, adding Israel accounted for around 1% of the group’s sales.
Guidance for adjusted pre-tax earnings margins to hit 9% over the year was held, with revenue growth expected to be 2-5% in the first half and reach "high single digits" in the second.
Shares rose 2.3% to 63.45p in early trading.