// THG achieves record H1 revenues of £1.1bn, delivering a 12.3% growth
// Adjusted EBITDA was £32.3m, but the group incurred an operating loss of £89.2m
THG sales jumped 12.3% to top £1 billion in its first half to 30 June, however, operating losses widened to £89.2 million.
Adjusted EBITDA was £32.3 million, however, its swelling losses reflected its “consumer price protection investment strategy”, the business said.
THG has said it will continue to hike prices at a “slower and lower” rate than inflation.
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Profit margins came on at 42.1%, versus 46.5% in 2021, due to “unusually high” material costs for products such as whey protein.
THG founder and CEO Matthew Moulding said: “Against the tough macro-economic backdrop, we have prioritised our loyal customer base, over maximising near term gross margins focusing on retention and growth of consumers.
“The strength, resilience and agility of our vertically-integrated business model, coupled with automation, has enabled us to significantly invest in price protection for consumers currently facing unprecedented cost-of-living challenges.”
The retailer said it was offseting its investment in price by reducing capex in 2023, a move the THG board believes will yield “a better return for shareholders and consumers alike in the near term.
Moulding said: “With a strong balance sheet and category leading positions within substantial end markets that continue to benefit from long-term structural growth, we have confidence in our ability to deliver long-term value for shareholders and remain on track to be cashflow positive in 2024.”
Moulding said that in its beauty and nutrition segments it’s customer base was 113% larger than three years ago.
He said its “highly engaged, global customer base, with high repeat rates, is a key asset of the business”.
Beauty sales jumped 20% over the half.
Moulding also highlighted that it recently achieved 10 million app downloads, since launching it in 2020, which he said would further strengthen THG’s relationship with consumers and its first party data advantage.
Meanwhile, THG appointed former N Brown finance boss Dean Moore and former Microsoft executive Gillian Kent as independent non-executive directors. Both will join the board with effect from 15 September.
