THG PLC (LSE:THG) finished last year with a bit of a whimper but after completing the demerger of its THG Ingenuity e-commerce logistics business, said the remaining parts of the group are moving forward as "a global, cash generative, health & wellness consumer brands group".
A post-Christmas trading update revealed a 7.1% decline in total revenue for the fourth quarter, with the remaining company (RemainCo) after the split -- THG Beauty and THG Nutrition -- seeing revenues fall 5%, while the departing THG Ingenuity segment grew 22.9%.
For the full year, Beauty & Nutrition saw revenues fall 2.5% and total group revenue shrank 5.0%.
For 2025, the ongoing RemainCo business is expected to deliver mid-single digit revenue growth, which relies on an expected return to growth in Nutrition that THG said was "evidenced by a much-improved start to the year across online and offline channels".
CEO Matthew Moulding praised the group's "agility and resilience during a year of significant change", which also included the sale and discontinuation of other "non-core" business units.
He said the Beauty business had "a standout year", referring to sales up 3.3%, with recent strategic actions that "set the stage for an even more remarkable 2025".
After the Nutrition arm saw sales fall 11.9%, which the company blamed on stocking issues for Myprotein as it carried out a rebranding exercise, Moulding highlighted "notable successes", including entry into the dairy market through the launch of a long-term partnership with Müller; the start of a co-manufacturing relationship in Japan and various licensing and retail listing agreements.
Looking ahead, THG noted that it could be in line to receive a £30 million VAT rebate after a recent tribunal decision for another company selling protein products ruled that they should be subject to 0% UK VAT.