THG seals deal with Holland & Barrett as it stays on track to meet expectations

Online retailer THG has said that it expects to meet expectations for the financial year and announced a big new deal with Holland & Barrett to send online orders to the health brand’s customers.

The business said that it had agreed for Holland & Barrett to use its Ingenuity platform, a system which works closely together with warehouses to manage online sales.

“We feel this is a true demonstration of how the THG Ingenuity platform can provide incremental services to established brands, delivering operational excellence, becoming world class at a fraction of the cost and in a fraction of the time,” said chief executive Matthew Moulding.

The company did not reveal the value of the deal, which will last for three years and covers the UK and Ireland.

Separately, THG said that it expects to deliver earnings before interest, tax, depreciation and amortisation (EBITDA), above £117 million in the 2023 financial year, which is a little higher than market expectations.

Revenue dropped 8.7% in the 2023 financial year to £2.0 billion, the business said.

Shares in the business jumped by about 11% on Tuesday morning.

“Whilst the economic background remains uncertain there are some optimistic signs, with consumer cost of living pressures set to ease further in 2024,” Mr Moulding said.

“We are confident that the investments and decisions made throughout the year position the group well to build upon the positive exit momentum.”

The company said that it expects “minimal impact” on the availability of its stock due to the disruption in the Red Sea caused by Houthi attacks on shipping. The financial impact “is not considered to be material”.