Manchester headquartered THG (The Hut Group) has advised that revenues covering all of its group activities reached £2.17 billion for the 12 months to December 31st, 2021. All divisions grew with the beauty division, in particular, growing its revenues from £751.6m to £1.11bn. Nutrition saw growth too, from £562.3m to £659.5m, yet even with these results, the business advised that it had reason to adjust its EBITDA margin from 7.9 per cent to within the range of 7.4 – 7.7 per cent due to adverse currency movements.
CEO Matt Moulding said: “Despite challenging conditions, we have scaled revenue and expanded our business model, particularly THG Ingenuity, well ahead of expectations given at our IPO 16 months ago. At the same time, we welcomed c.3000 new employees across the world to the Group, the majority of whom are within the UK, and completed many transformational projects, including the opening of our 1m sq. ft. UK technology campus, ICON.
“During the year, the Group also invested around £1bn across infrastructure, technology and M&A to further develop the long-term growth prospects of our key trading divisions. We remain committed to our strategy of investing for growth across our global fulfilment network and technology platform.”
THG has been criticised for its plans to spin out its Ingenuity division from its beauty and nutrition divisions, with Moulding himself being criticised for his ‘handling’ of City briefings and questioned on the corporate governance of the business.
Separately in reports, it has emerged that Moulding has sold the Omega distribution centre in Warrington to LondonMetric, a property investment firm. This formed part of a sale of commercial properties by THG to Moulding which took place prior to the float of THG and for which THG continues to occupy and pay rent, generating some £19 million annually.