THG's revenue fell by £100m while its pre-tax losses widened during the first half of 2023, new figures have revealed.
The Manchester-headquartered group has posted a revenue of £969.2m for the six months to June 30, compared to the £1.069bn it achieved during the same period in 2022.
Its pre-tax losses also went from £108.1m to £133m over the same time.
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THG also said it had reduced its headcount by another 500 people since the start of the year.
The Myprotein owner said that it now employed 2,500 fewer people than it did in early 2022, part of a cost-cutting drive which has included investment in automation.
By the end of December last year it had already reduced its headcount by 2,000 people.
In a statement issued to the London Stock Exchange, THG said its increasing losses were due to exiting loss-making discontinued categories and non-core assets which generated a one-off non-cash charge of £26.2m.
THG's beauty division's revenue fell by over 10% to £538.7m while its ingenuity arm also saw a drop in sales by 14.9% to £320m. However, the nutrition division increased its sales by 2.6% to £340.7m.
Chief executive Matthew Moulding said: "Inflationary pressures provided significant challenges to consumers and businesses alike over the past 18 months.
"Our strategy of supporting our consumers through 2022, sacrificing margins in the short-term, is bearing fruit.
"This is reflected in the strong H1 results we've posted today, across adjusted EBITDA and cash.
"The cash performance of the group has been strong in H1, but also over the last 12 months.
"Group cash flow performance improved by £350m compared to the previous 12 months, reflecting the completion of our global infrastructure roll-out program, with the group now achieving significant operating leverage from a well invested, automated, global platform.
"Our nutrition division delivered a record H1 revenue performance and, with inflationary pressures easing, posted substantially higher EBITDA margins year-on-year as we exited H1.
"The early results from the Myprotein rebrand are also encouraging as we've taken steps to further enhance the premium nature of the world's No1 online sports nutrition brand.
"These actions should provide for both increased partnership opportunities and category expansion, supporting our ambition of building Myprotein into a global lifestyle brand.
"Recent progress within our beauty division has been more encouraging, underpinned by strong performances in the group's Perricone MD and ESPA brands, as well as across Cult Beauty.
"Margin improvements have steadily built through H1, as focus shifted to orders that deliver immediate profitability, where we benefit from the economies of scale associated with our local distribution hubs.
"The beauty division was held back in H1 by short-term global de-stocking impacting manufacturing volumes.
"The situation has now started to reverse with the beauty division returning to growth since August, at the same time margin progression continues.
"Finally, Ingenuity's pivot to larger, more complex Enterprise clients is gaining momentum, reflected in some key client wins and a strong pipeline.
"We were thrilled to be listed in the Gartner's Magic Quadrant for Digital Commerce, in recognition of our ability to provide an all-encompassing direct-to-consumer journey, cementing Ingenuity as a key partner for Enterprise clients seeking comprehensive commerce excellence."
