Download full report with analyst certification and important disclosures
Sep 29 2023, 07:00 IST/BST
THG plc
Model update – lowering FY23 and FY24 forecasts
DAVY VIEW
While THG Nutrition’s robust profit performance is expected to continue into the second half, we now anticipate a softer cadence of revenue and margin recovery in THG Beauty and Ingenuity to weigh on full-year profitability and free cashflow generation – we expect this to continue into FY24. We are lowering our FY23 and FY24 adjusted EBITDA forecasts by 3% and 7.4% respectively. We now feel that the pathway to free cashflow recovery has been extended and, as such, we are changing our rating from ‘Outperform’ to ‘Neutral’.
