THG said on Tuesday it has agreed to a major new partnership between Ingenuity, its online platform that serves third-party brands, and UK wellness retailer Holland & Barrett for its automated facilities in the UK.
The three-year deal will see THG Ingenuity become H&B’s main ecommerce operational partner in the UK and Ireland by providing fulfilment and courier management services for the retailer’s growing online business.
Holland & Barrett is expected to use THG’s automated facilities from the second quarter of 2024.
Matthew Moulding, chief executive of THG, said: “Holland & Barrett is one of the UK’s largest health and wellness retailers, and a major online player. We’re delighted to be supporting their ecommerce ambitions through underpinning their operational efforts for D2C fulfilment and courier manage
Separately, THG said that its fourth-quarter and full-year performance showed it had returned to break even over the year, in line with expectations, as revenue growth returned in Q4, 2023.
Fourth-quarter continuing revenue climbed by 1.1%, driven by THG’s Beauty and Ingenuity brands, bringing a return to growth after sales fell over each of the previous first three quarters.
The return to growth supported the group to cashflow breakeven over the full year, compared to a £215m outflow in 2022.
“A combination of automation and significant cost initiatives delivered in 2022, in addition to a receding inflationary environment, each played a key role,” said Moulding.
£125 million of capital expenditure investments were made over the year, meanwhile, leaving the group with around £600 million in cash.
“Whilst the economic background remains uncertain there are some optimistic signs, with consumer cost of living pressures set to ease further in 2024,” Moulding added.
“We are confident that the investments and decisions made throughout the year position the group well to build upon the positive exit momentum.”
