Shares of Manchester-based consumer brands giant THG plc fell as much as 8% after it announced revenue fell 8.4% to £2.045 billion in the year to December 31, 2023, “primarily driven by the positive action to discontinue loss making categories.”

The company reported continuing revenue of £1.983 billion, down 2.8% “as the group prioritised profitable sales and territories reflected in the higher quality EBITDA.”

THG, which owns online brands Lookfantastic and Myprotein, reported a smaller operating loss of £185.4 million compared to £495.6 million a year earlier “primarily due to the one-off non-cash impairment charge of £275.4m in 2022 that did not reoccur in 2023.”

The Manchester firm said that on a reported basis, adjusted EBITDA increased to £114.1 million (2022: £64.1m), with a margin of 5.6% (2022: 2.9%).

“As we enter FY 2024, overall group revenue trends continue to improve, with notable momentum in Beauty following the strategic changes made during 2023,” said the firm.

“Whilst the Yen has weakened further in Q1 2024 impacting THG Nutrition, the group’s start to the year provides us with confidence in delivering in accordance with market consensus.”

THG went public at £5 a share in September 2020 and the stock rose to around £8. However, THG shares have since fallen about 90% to around 62p — slashing the firm’s stock market value to roughly £830 million — following a disastrous presentation to investors and concerns over the company’s structure, transparency and governance.

THG plc CEO Matthew Moulding said: “In 2023, we made material progress against our strategic priorities, delivering significant profit growth following the support for our consumers through the cost-of-living crisis in 2022. This focus led to the group delivering record EBITDA after cash-adjusting items in 2023, higher than at the peak of the pandemic …

“The return to group revenue growth in Q4 was especially pleasing, and this momentum has continued into 2024.”