The Hut Group revenue smashes £2bn amid takeover talks

The Hut Group
// The Hut Group posts rise in profits and revenues in its full year results
// Group revenue of £2.2 billion represents a 38% growth year-on-year

The Hut Group (THG) has reported an increase in full-year profits and revenues as it confirmed it has received “indicative proposals” from firms interested in buying the ecommerce business.

THG chief executive Matthew Moulding said: “You will all be aware that there has been significant speculation about possible third party interest in THG. I can confirm that the board has received indicative proposals from numerous parties in recent weeks.”

For the financial year ended 31 December 2021,THG said it was “delivering well ahead” of its revenue and expansion targets with sales at £2.2 billion and adjusted EBITDA of £161.3 million.

Sales grew 38% year on year and on a two year basis revenue has rocketed 95%.

READ MORE: Cult Beauty co-founder leaves just 8 months after THG acquisition

All divisions of the business grew steadily over the year, with sales at THG Beauty up 49%, THG Ingenuity up 42% and THG Nutrition up 17% in 2021.

For the three months ending 31 March 2022, THG sales advanced 17.2% to £520.2 million, despite “a particularly challenging prior year period impacted by Covid-related lockdowns”.

The online retailer said the long-term trend towards ecommerce is continuing to support new customer acquisition and retention.

THG said it would aim to limit the impact of rising costs on its consumers by absorbing some of the cost pressures. It will also raise prices “at a lower rate to underlying input costs.”

The company also outlined factors such as the war in Ukraine as a challenge, with a 1% revenue impact expected from the ongoing conflict.

Moulding said: “Alongside significant revenue growth, 2021 saw us acquire and successfully integrate a number of complementary businesses, deepening our vertical integration across both Beauty and Nutrition and expanding our reach to consumers across the globe.

“The operational resilience and performance of our Ingenuity infrastructure, especially during our peak trading period was a highlight, as was the opening of our automated warehouse at our Icon technology campus, delivering material improvements and cost savings across our global storage and delivery infrastructure.

“Our technology platform is now powering an expansive list of global brands across a multitude of sectors, and the number of third-party websites has almost doubled during the year.

The group hired former ITV boss Lord Charles Allen as non-executive chair last month following concerns about its corporate governance as Moulding held the roles of both chief executive and executive chair.

“Charles’ extensive boardroom experience will help the group continue to drive profitable and sustainable growth, and to meet the highest standards of corporate governance,” said Moulding.

“We remain confident in delivering our strategic growth plans for the year ahead and beyond, with full support from the board and our new chairman.”

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