The Hut Group dragged to FY statutory loss despite surge in revenues

(Sharecast News) - E-commerce company The Hut Group said on Thursday that full-year revenues and adjusted underlying earnings had both surged in 2020 after the Covid-19 pandemic led to an increased level of online shopping.
The Hut Group posted full-year revenues of £1.6bn, up 42% year-on-year and adjusted underlying earnings of £151.0m, a 35% increase on the prior year, after absorbing £2.6m of self-funded furlough costs.

However, while the FTSE 250-listed firm reported a statutory operating profit before adjusted items of £46.0m, nonrecurring costs like those associated with its IPO and the Covid-19-pandemic dragged the group to a £482.0m statutory pre-tax loss.

Roughly 10.7 new customers shopped with THG in 2020, with the number of beauty box subscribers up 39% year-on-year and the number of orders from its nutrition and beauty arms rising 41% and 58%, respectively.

Chairman and chief executive Matthew Moulding said: "We approach FY21 with confidence having navigated successfully through a milestone year in the group's history.

"Our global D2C brand-building capabilities and proprietary Ingenuity technology platform has enabled us to further develop both our external brand relationships, and our expanding portfolio of Beauty and Nutrition own brands. Leveraging the platform to build an impressive client base of blue-chip consumer brands has been a highlight of the year, supported by encouraging momentum in the current year Ingenuity Commerce pipeline."

THG also pointed to some "strong" revenue momentum in the first quarter of 2021, with revenues growing 58% year-on-year as the firm made "encouraging progress" on the integration of Dermstore into the group.

As of 0830 BST, Hut Group shares were down 2.57% at 685.91p.