British retail giant THG has reported an almost 10 percent drop in revenue and widening losses in the first half of the year as it continued to cut down on loss-making categories.

The group, which owns a raft of fashion, beauty, and nutrition brands including Lookfantastic and Myprotein, reported a 9.3 percent drop in revenue to 969.3 million pounds in the six months ended June 30.

Revenue at THG Beauty fell 10.4 percent to 538.7 million pounds, while revenue at THG Ingenuity - the company’s technology services division - dropped 14.9 percent to 320 million pounds.

Shares of THG fell 18 percent Thursday.

On a brighter note, the company hailed record revenue at THG Nutrition in the first half, up 2.6 percent to 340.7 million pounds.

THG said the overall drop in revenue was largely driven by the strategic exit of non-core divisions and discontinued categories; short-term volume reductions within THG Beauty manufacturing; the de-emphasis in certain beauty markets; and the proactive pivoting of the THG Ingenuity strategy.

Losses mount at THG

The company’s operating loss widened to 99.5 million pounds from 89.2 million pounds, while its net loss widened to 133.1 million pounds from 106.4 million pounds.

“Inflationary pressures provided significant challenges to consumers and businesses alike over the past 18 months,” said CEO Matthew Moulding in a statement.

However, he added: “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.”

Accordingly, the group reiterated its EBITDA outlook.

However, it lowered its guidance for revenue, which it now expects to come in at between flat and up 5 percent. It had previously expected low- to mid-single-digit growth.

The company said overall sales trends have gradually improved into the second half, with “Q3 continuing revenue anticipated to be marginally ahead of Q2” and “a notable step-on in THG Beauty and THG Ingenuity”.