Q3 2023 Trading Statement

Group returned to CCY revenue growth in September at +3.2% (-0.3% reported)

Positive free cash generation of +£5m over LTM

Full year revenue and adjusted EBITDA guidance unchanged

Q3 2023 Group Trading Performance

Q3 2023 highlights

• Best quarterly revenue performance in the last year: -4.4% on a continuing basis (-2.1% CCY).
• Performance improved each month in the quarter, with the Group returning to CCY growth in September (-0.3% reported, +3.2% CCY). Full year revenue guidance of 0% to -5% remains unchanged.
• Each division continues to make progress against its stated strategy to return to sales growth and rebuild margins:

o The impact of global de-stocking on our beauty manufacturing business has eased, supporting a return to growth for THG Beauty in September (+1.7%, +5.1% CCY). The strategy of focusing on higher margin sales while reducing orders that do not deliver an immediate return has supported a much-improved Q3 margin performance.

o THG Nutrition revenue performance reflects the rebrand launch, temporarily reducing new product launches while the new branding is being rolled out. Notwithstanding this brief interruption, the division delivered a record Q3 adjusted EBITDA, reaping the rewards from the investment in pricing strategy made during peak inflation.

o Whilst Enterprise sales cycles have been longer than anticipated in THG Ingenuity, progress is reflected in September sales performance (-2.3%), from H1 (-14.9%). Monthly recurring revenue[3] continued to build in September at +7.6%, an acceleration on June's +6.2%, underpinned by growth in existing clients, and new business.

• Growth in UK active customers in THG Beauty and THG Nutrition was supported by investment in the customer proposition with extended next day delivery cut offs and UK delivery times at their fastest ever level (17% quicker than Q3 2021).
• Group stock levels have continued to normalise whilst retaining improved availability, supporting another quarter of strong cash performance[4], contributing to a £5m inflow for the LTM[5].
• Revenue, adjusted EBITDA and cash generation guidance remains unchanged for FY 2023.
• Successful completion of the Group's three-year global infrastructure roll-out, and the strong efficiencies these investments are delivering, means we now anticipate FY 2024 capex spend will be c.£30m less than previously guided at £100m to £110m (FY 2023 guidance c.£135m).
• In addition, we continue to monitor the FCA listing regime review in respect of the move to the Premium segment, with our preparation and focus on the implementation of the outcome when the conclusion is announced.

Matthew Moulding, CEO of THG commented:

"Q3 has been another strong quarter of progress across the Group, with each division delivering improved performances. The pivots made within each division to ensure they thrive in a high inflation global environment are bearing fruit.

"The momentum with which we exited Q3 was especially pleasing, with the Group returning to positive constant currency revenue growth of +3.2% in September, driven by a strong performance across our Beauty division.

"We remain focussed on restoring margins to pre-inflation levels while continuing to focus on cash generation. This is reflected in a best ever Q3 profit performance from our Nutrition division. Our cash discipline has been excellent, reflected in delivering positive free cash flow of £5m, despite making c.£140m of capex investments, over the last twelve-month period. The steps we have taken will further underpin the future cash generation of the Group.

"Both our operations and inventory are well positioned ahead of peak trading, with the benefits of our investment in UK and US automated fulfilment centres enhancing the customer proposition through accelerated delivery times, positively influencing customer contact rates and overall satisfaction.

"The Group is exceptionally well invested with a strong balance sheet, with each division well positioned to grow market share in any market conditions."

Analyst and investor conference call

THG will today host a conference call for analysts and institutional investors at 8:30am (UK time) via the following link:

To ask questions, you must dial in via conference line using the below details:

• Confirmation password: THG - Q3 Update
• UK dial in: +44 (0) 33 0551 0200
• US dial in: +1 786 697 3501

APPENDIX Reported revenue change % Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 THG Beauty 16.7% 19.2% 3.0% -9.4% -10.7% -10.2% -4.4% THG Nutrition 9.8% -5.8% 3.0% 4.2% 4.5% 0.2% -4.6% THG Ingenuity 17.9% 11.1% -2.5% -14.1% -14.3% -15.4% -8.8% Inter-group elimination 10.6% 10.2% -4.2% -14.0% -15.5% -17.1% -10.5% Group (continuing) revenue 16.6% 9.4% 3.0% -6.3% -5.6% -6.5% -4.4% Other (Discontinued) -10.1% -2.7% -17.6% -34.9% -58.8% -76.3% -97.6% Group revenue 14.9% 8.6% 1.6% -8.3% -8.3% -10.3% -9.5% Constant currency change % Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 THG Beauty 21.5% 15.2% -4.7% -14.5% -13.8% -10.5% -2.0% THG Nutrition 12.4% -8.5% -3.1% -1.2% 3.1% 0.3% -2.3% THG Ingenuity 18.2% 10.7% -3.4% -14.7% -14.6% -15.4% -8.4% Inter-group elimination 10.6% 10.2% -4.2% -14.0% -9.7% -9.2% -3.9% Group (continuing) revenue 20.5% 6.1% -3.9% -11.3% -8.1% -6.9% -2.1% Other (Discontinued) -10.9% -2.7% -17.9% -35.0% -58.8% -76.3% -97.6% Group revenue 18.2% 5.7% -4.8% -13.0% -10.9% -10.4% -7.4%

[2] CCY defined as constant currency basis

[3] Monthly Recurring Revenue comprises software-as-a-Service license fees, monthly brand building fees, infrastructure service fees, revenue share, translation and creative services.

[4] Group free cash flow is calculated after working capital, net capital expenditure, adjusting items, tax and financing (prior to debt capital repayments and consideration on acquisitions).

[5] Last twelve month period ending September 2023.