The Hut Group swings to full-year loss despite soaring revenue

The Hut Group (THG) has posted a full-year loss despite a 41.5 percent jump in revenue.

For the year ending December 31, the British group reported an operating loss of 481.8 million pounds, compared to a profit of 33.5 million pounds a year earlier. The company said this was driven by one-off, non-cash items including costs associated with its IPO and Covid, as well as a 331.6 million pound non-cash share-based payments charge.

The online retailer, which owns brands MyBag, Coggles, and All Sole, saw revenue during the period soar 41.5 percent to 1.6 billion pounds. Revenue for the group’s beauty division increased 57.1 percent to 751.6 million pounds, while revenue at THG Ingenuity increased 7.3 percent to 137.3 million pounds.

Adjusted EBITDA increased 35.2 percent to 150.8 million pounds.

The group also gained 10.7 million new customers in the year.

THG upbeat on Q1 trading

The company said its strong performance has continued into the first quarter, with revenue growth up 58.2 percent. Ingenuity Commerce has been a highlight with 187.9 percent growth in the quarter, up from 160.4 percent in 2020.

Founder, CEO and executive chairman Matthew Moulding [pictured] said in a statement: “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.”