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THG PLC - Manchester-based online beauty products retailer that trades as The Hut Group - Reports record sales of GBP2.25 billion in 2022, up 3.3% from GBP2.18 billion the year prior. THG Beauty remains largest revenue line at GBP1.19 billion, up 6.1%. THG Nutrition delivers GBP676.4 million, up 2.0%. THG Ingenuity, the retailing platform that THG offers to other retailers, contributes GBP208.1 million, up 7.1%. THG cites significant investment in price strategy through 2022 to support long-term customer retention, alongside new customer growth in established and emerging markets for the growth.
Makes GBP100 million in cost savings in 2022 and targets another GBP30 million worth in 2023. Adjusted earnings before interest, tax, depreciation and amortisation for 2022, on a continuing basis, will be in line with current market expectations, THG says. Adjusted Ebitda in 2021 was GBP161.3 million, while pretax loss was GBP138.1 million.
Chief Executive Matthew Moulding says: "With the completion of the divisional reorganisation, and around GBP100 million of annual efficiency savings already delivered, the group enters 2023 with strong momentum to achieve substantial margin expansion. Core commodity prices used within our Nutrition division have seen significant deflation since their record highs in 2022, giving us confidence in significant profit progression as we move through the year ahead, against a much reduced group cost base. We remain highly confident of delivering adjusted Ebitda margins in excess of 9.0% over the medium-term."
Current stock price: 61.08 pence, down 11% in London on Tuesday morning
12-month change: down 67%
By Tom Waite, Alliance News editor
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