THG PLC on Tuesday said it recorded its best quarterly revenue performance in the last year during the third quarter, despite revenue falling 4.4% from a year earlier, as it noted performance improving each month in the quarter.

Shares in THG were up 7.8% to 72.04 pence each in London on Tuesday morning.

In the three months that ended September 30, the Manchester-based e-commerce firm said revenue fell 4.4% to £466.5 million, or 2.1% on a constant currency basis, from a year earlier. Revenue in the year-to-date fell 5.5% to £1.42 billion, or 5.7% on a constant currency basis.

Third quarter THG Beauty revenue fell 4.4% to £272.0 million, or 2.0% on a constant currency basis. THG Nutrition revenue fell 4.6%, or 2.3% at constant currency, to £156.2 million. THG Ingenuity fell 8.8%, or 8.4% at constant currency, to £155.7 million.

Inter-group elimination was negative £117.4 million, falling 10.5% from a year earlier or 3.9% on a constant currency basis.

THG said third-quarter revenue still marked the best quarterly revenue performance in the last year, with performance improving each month and culminating in the group returning to a constant currency revenue growth of 3.2%, or down 0.3% on a reported basis.

THG said its full-year revenue guidance of flat to falling 5% from a year earlier remains unchanged.

‘[The third quarter] 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 [the third quarter] 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,’ said Chief Executive Officer Matthew Moulding.

‘We remain focussed on restoring margins to pre-inflation levels while continuing to focus on cash generation. This is reflected in a best ever [third quarter] profit performance from our Nutrition division...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.’

Moulding continued: ‘The group is exceptionally well invested with a strong balance sheet, with each division well positioned to grow market share in any market conditions.’

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