E-commerce group THG backed its full-year outlook on Tuesday as it posted a rise in third-quarter revenues and said it had signed a new banking facility.
In the quarter to 30 September, overall revenues rose 2.1%. The beauty and nutrition core territories saw revenue growth of 10.2%.
THG reported revenue growth of 4.9% and 2.9%, respectively, for Beauty and Nutrition, reflecting share gains in strategic markets.
The company backed its guidance for the year. It still expects revenue growth of 10% to 15% and adjusted EBITDA of between £100m and £130m, pre Software-as-a-service cost reclassification. Guidance for cash on hand at year-end was also maintained, at around £500m, with an additional £170m undrawn revolving credit facility.
THG also said on Tuesday that it had signed an incremental £156m banking facility with existing lenders BNP Paribas, HSBC, and NatWest.
Chief executive officer Matthew Moulding said: “Another strong quarter of delivery across our Beauty and Nutrition divisions has enabled market share growth in our key global territories. We remain committed to our strategy of supporting our customers around the globe through investment in price protection, without compromising on quality or choice. As commodity prices ease further, we remain well positioned to grow margins into 2023, whilst reducing pricing to consumers.
“The fourth quarter has started positively, and we are well positioned from a logistics and supply perspective to meet the significant uplift in demand anticipated during the cyber period, whilst continuing to deliver a high-quality customer experience.”
Moulding said that given the current market environment, the banking facility is “a strong endorsement” of the group’s long-term business model, alongside the recently announced-increased investment from Qatar Investment Authority.
At 0825 BST, the shares were up 10.7% at 51.48p.
