Overall Group sales continued to strengthen, with improvements made in each of the past five consecutive quarters. Notable strong momentum in Beauty offsetting continuing currency headwinds and previously announced rebrand transition in Nutrition.

The strategic focus on higher-margin sales through FY 2023 has been rewarded, with continuing revenue growth of +4.5%, building on the +1.1% growth achieved in Q4 2023.

THG Beauty delivered a standout Q1 performance with growth of +11.1% (Q1 2023: -12.4%), following targeted changes to geographic strategy through 2023, focusing on more profitable customers and territories closest to our global distribution hubs.

Positive momentum continued into Q1 with all channels in growth. THG Beauty channels are comprised of Retail (c.80% of revenue), own-brand (c.10%) and manufacturing (c.10%).

Performance in the UK (over half of online Beauty revenue) was notably strong, ahead of the overall Beauty business at +11.1% growth.

App participation grew to 24% of online revenue (Q1 2023: 15%), with particularly strong participation in the UK at 35%. Increased app revenue participation supports deeper relationships with our customers, providing valuable first party data and lessening the reliance on paid marketing channels.

THG Beauty further increased market share in the UK total premium beauty market[6], and further enhanced its fragrance credentials with 10 new brand launches.

Customer health remains robust with active customer numbers back in growth (FY 2023: 8.5m), driven by UK and MENA territories, largely reflecting the success of our loyalty program which now has c.2.3m members, having launched in 2022.

Biossance was migrated onto the Ingenuity platform in January. Early signs are positive and we are confident that Biossance will scale to become one of our largest own brands, with prominence in the US, both online and across major retailers.

Manufacturing performance was robust through Q1, delivering sales growth through a materially reduced cost base following the savings initiatives completed in 2023.

Myprotein continues to be the fastest growing sports nutrition brand across UK retailers with the brand's Q1 retail GMV more than doubling YoY[7]. We extended distribution by over 1,000 stores in Q1 with launches across sports nutrition and vitamins ranges in Asda, Boots and Tesco taking UK retail doors to c. 5,000[8]. 

The Myprotein rebrand roll-out, the biggest in its 20-year history, made good progress through Q1, with c.40% of products available now under the new branding in the UK and Europe. Early results from the rebrand are very promising, with strong brand awareness growth in the UK, moving from 48% (Aug'23) to 52% (Mar'24)[9], supported by the launch of high-performance range 'Origin'. Elevating the brand in this way will position it well for global offline and licensing opportunities.

Q1 Nutrition revenue growth was held back by a c.16% devaluation of the Japanese Yen YoY (15% of THG Nutrition revenues), as well as expected availability gaps as the product range transitions to the new branding.

Continued devaluation risk with the Japanese Yen is being addressed with the launch of local manufacturing in H2, as well as through licensing agreements, where local partners recognise full revenue value and THG receives a percentage as a royalty.

Local manufacturing in India successfully launched in Q1, allowing products to be more quickly tailored to the needs of the local market, while reducing lengthy supply chains in the movement of goods from the UK to India. We expect India to become a key market for Nutrition over the next three years.

We further expanded our category reach with Iceland and our UK licensing partnerships with ready-to-drink (Jimmy's coffee) and chilled goods (Bakeaway). Physical customer touchpoints supporting UK brand awareness now includes c.1,500 retail doors via licensed products, enabling us to enter new in-store locations.

Internationally, a physical presence through c.20,000 stores across Europe, Japan and the US is expected to help drive the mix of total GMV from brand sales towards 25% offline over the medium-term.

The contribution from licensing partnerships improved THG Nutrition's total GMV in Q1 2024 to -3.5%, with UK total brand sales +6.2% YoY.

Overall customer numbers in growth since December 2023, underpinned by the store channel performance with online active customer numbers in-line with year-end, with notable growth in UK, India and MENA.

THG Ingenuity external revenue: Monthly recurring revenue[10] continued to build in March at +26.3% YoY, an acceleration on December (+14.7% YoY).

The first dispatches under the Holland & Barrett partnership completed in March as part of an eight week phased migration project, demonstrating speed and accuracy of execution while maintaining full stock availability and a full suite of delivery services.

During Q1 THG Ingenuity delivered numerous contract wins, including a partnership with fashion and lifestyle brand White Stuff on their brand re-launch into Germany. Through a fully localised technology, digital marketing and fulfilment strategy to better serve White Stuff's growing German customer base, the relaunch delivered +75% YoY revenue growth (Feb'23 to Feb'24).

Our fulfilment network is becoming increasingly optimised through automation and AI to drive best-in-class delivery and customer service (86% of THG brand Trustpilot reviews rated 5* in Q1).

THG Ingenuity internal revenue: The Group implemented profitability improvement plans through 2022 and 2023, which included the discontinuation of non-profitable categories in addition to the sale of OnDemand. As both Beauty and Nutrition return to growth, internal revenue will also benefit, albeit at a slower rate than external sales, given anticipated volume of contract wins.

Expectations for FY 2024 and medium-term guidance remain unchanged from the FY 2023 Preliminary results statement on 10 April 2024, with a continued focus on revenue growth, margin progression and cash generation.

Group revenue growth in H1 is anticipated to be in the range of +2.0% to +5.0% on a continuing basis (-1.0% to +2.0% reported), moving towards high single digits in the second half, reflective of the onboarding of new contracts within Ingenuity, growth in offline sales within THG Nutrition and full Myprotein rebrand product availability.

Following developments in the Middle East, the Group continues to monitor the situation, with Israel accounting for c. 1% of Group sales, weighted towards Nutrition.