**THG Results Overshadowed by Ingenuity Demerger**

**Key Findings**

* THG PLC – Revenue rose 36.8% to £2.29 billion in 2021, but the EBITDA margin declined. * The company announced a demerger of its Ingenuity Services business. * Investors were largely receptive to the demerger news, with THG stock rising 11% on the day of the announcement.

**THG Performance**

THG experienced revenue growth of 36.8% in 2021, reaching £2.29 billion. However, escalating supply chain costs, as well as increased marketing and technology investments, eroded the EBITDA margin by 5.2% to £169.5 million.

**Demerger of Ingenuity Services**

The significant development in the announcement was the proposed demerger of Ingenuity Services, a data and technology platform within THG. The demerger aims to create two independent listed companies, each focusing on distinct areas of the business.

Matthew Moulding, CEO of THG, explained the rationale behind the demerger: "The proposed demerger will enable THG to sharpen its focus on its core Beauty and Nutrition businesses, where it has built a differentiated competitive position."

**Market Reaction**

Investors responded positively to the demerger news, with THG's share price rising 11% to 197.20p on the day of the announcement. This reaction suggests that investors believe the separation of Ingenuity Services will enhance the value of both businesses.

**Outlook**

THG's outlook remains promising, as it continues to expand its global presence and invest in its core businesses. The demerger of Ingenuity Services is expected to streamline operations and unlock further value for shareholders.