1. News
April 21, 2022

THG reports 38.1% growth in group revenue for fiscal year 2021

The company expects its fiscal 2022 revenue to grow in the range of 22.0% to 25.0%.

British e-commerce retailer The Hut Group (THG) has recorded group revenue of £2.2bn ($2.87bn) for the fiscal year 2021 (FY21), up 38.1% from the previous year.

International sales accounted for 58% of total group revenue while US revenue accounted for more than 19% of the group, following the acquisition of skincare and beauty marketplace Dermstore.

Revenues of THG Beauty and THG Nutrition businesses grew 51.8%, and 20.9%, respectively, during the year.

The company’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for FY21 was £161.3m ($210.6m), while its gross profit margin was 44.7%.

Gross profit growth was 33.7% in FY20 and operating loss was £137.5m ($179.34m).

THG CEO Matthew Moulding said: “In our first full year as a public company, 2021 saw us scale revenue and expand our business model, well ahead of targets set at IPO.

“Alongside significant revenue growth, FY 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.”

For the fiscal 2022 first quarter, which ended 31 March, THG’s revenue grew 17.2% year-on-year (YoY) and 87.9% compared to two years prior.

During the quarter, THG Beauty sales rose 19.7% from last year, while THG Nutrition delivered revenue growth of 12.6% YoY, with record performance for the UK.

The company expects its revenue for fiscal 2022 to grow in the range of 22.0% to 25.0%.

Last August, THG agreed to buy Cult Beauty, an online retailer focused on prestige beauty brands, for £275m ($381m).