THG plc - Q4 update – solid revenue out-turn; margin atrophy reflecting externalities

Davy Research
/Read Important Disclosures

While top-line growth remains solid, the persistence of supply chain externalities will weigh on margin. For Nutrition, whey input costs remain elevated and require continued price increases. For Beauty, margin pressure is likely more benign, reflecting the largely distribution-focused operating model. Ingenuity Commerce continues to perform well, with FY 2022 revenue guidance reiterated. On first look, we will pare our FY 2021 and FY 2022 adjusted EBITDA by 5% and approximately 9% respectively.