The Hut Group Rejects Unfair Offers While Achieving £2.2bn in Revenues
- THG records £2.2bn revenue growth
- 95.1% sales growth across all business units on a two-year basis
- International sales at 58% of revenues, USA at 19%
- Profits increased 33.6% to £974.8m despite challenges
- THG Beauty’s 51.8% sales growth and 2.3 million more global active customers
- Operating loss of £137.5m due to costs, but adjusted EBITDA at 7.4%
- Lord Charles Allen appointed as independent non-executive chair
The Hut Group (THG) has recorded a record revenue growth of 38.1% year-on-year from £1.6bn to £2.2bn in the full year ended 31 December 2021, driven by organic growth in all divisions and supplemented by the contribution from acquired businesses. The group’s sales grew 95.1% across all business units on a two-year basis. International sales represented 58% of revenues, with the USA now representing 19% of group sales. Profits increased 33.6% to £974.8m despite ongoing global supply chain challenges, commodity and FX headwinds. THG Beauty delivered 51.8% sales growth, including a contribution from Dermstore, Bentley Laboratories, and Cult Beauty. The group’s number of third-party websites has almost doubled in FY21. However, the company incurred an operating loss of £137.5m due to non-recurring distribution costs, administrative costs, and a £53m non-cash cost in respect of impairment within THG Experience, THG Luxury, and THG OnDemand divisions. The group recorded adjusted EBITDA of £161.3m at a margin of 7.4%. THG plans to limit the impact of cost pressures on consumers by maximizing efficiencies in its operating model and absorbing some pricing pressures. Lord Charles Allen has been appointed as an independent non-executive chair to help drive profitable and sustainable growth.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about The Hut Group’s financial performance, including revenue growth, sales figures, international sales, profit increase, and operating loss. It also mentions the appointment of an independent non-executive chair and takeover proposals. There is no sensationalism or opinion masquerading as fact, and the information is relevant to the main topic.
Noise Level: 2
Noise Justification: The article provides relevant information about The Hut Group’s financial performance, including revenue growth, sales figures, and profitability. It also mentions the company’s plans to address cost pressures and recent takeover proposals. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: The Hut Group’s financial performance and potential takeover proposals impact the company’s stock price and investor sentiment.
Financial Rating Justification: This article discusses The Hut Group’s financial results, including revenue growth, profitability, and operating costs. It also mentions the company receiving unacceptable takeover proposals, which could potentially affect its stock price and financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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