A little over a year ago, THG (formerly The Hut Group) raised AUD$3.56 billion on the London Stock Exchange. A landmark move that ranked as the biggest IPO (initial public offering) in the UK since 2015.

Last week, THG announced its first half 2021 results – an impressive 44.7 per cent surge in group revenues to AUD$1.81 billion.

Europe’s largest online retailer of premium beauty products also revealed its road map for the future. The owner of major websites and brands, including Lookfantastic, RY.com.au, Australia’s largest haircare and skincare online store, Glossybox, Eyeko and Christophe Robin luxury haircare, revealed it would spin off its beauty division in a separate listing next year.

The beauty division was one of the fastest-growing sectors of the business during the first half of the year with total sales of AUD$873.53 million – up from AUD$560.88 million over the same period in 2020

Over the past 18 months, THG has continued its corporate spending spree with the acquisition of Perricone MD skincare for US$60 million in cash. But the major buyout to extend its reach in the US market was Dermstore.com, one of the largest online retailers of prestige and speciality skincare in the US, from Target for US$350 million.

Ingenuity, THG’s end-to-end technology and operating platform, was launched last year. Its aim is to help leading brands leverage their direct-to-consumer models and achieve global scale more rapidly. Early partners included Elemis, PZ Cussons Beauty, Burt’s Bees, Nuxe, Revolution Beauty and By Terry.

Last November, ASX-listed BWX, the owner of Sukin, Andalou Naturals and Mineral Fusion, signed with THG Ingenuity to enter five priority markets in Europe, Asia and North America with an intent to expand to 22 markets by the end of 2022. BWX also recently acquired a majority stake in Go-To skincare.

THG Ingenuity also reported surging revenues during the first half – up 166 per cent to AUD$34.67 million.

With the explosive global interest in health and well-being, the THG Nutrition division, including the Myvitamins, Myvegan and Extante Diet brands, is also on a roll. Revenues increased 27 per cent over the first six months of the year to AUD$621.52 million – up from AUD$488.88 million last year.

According to THG – “A separate listing for THG Beauty will position the business very well to focus on investment in its key growth areas, including own brand portfolio extension.”

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