10th Apr 2024 08:33
(Alliance News) - THG PLC on Wednesday remained optimistic of its prospects for the year ahead, after loss narrowed in 2023 despite a drop in revenue.
For the year ended December 31, the Manchester-based e-commerce platform reported a pretax loss of GBP252.0 million, narrowed from GBP549.7 million a year prior.
Operating loss narrowed to GBP185.4 million from GBP495.6 million, primarily due to the one-off non-cash impairment charge of GBP275.4 million in 2022 that did not reoccur in 2023.
Revenue was GBP2.05 billion, down 8.7% from GBP2.24 billion the previous year. According to THG, this was driven by "the positive action to discontinue loss making categories". However, it did note that revenue trends have continued to improve in the current year, with "notable momentum" in the Beauty segment.
Group adjusted earnings before interest, tax, depreciation and amortisation were GBP114.1 million, up 78% from GBP64.1 million, while continuing adjusted Ebitda was GBP120.4 million, up 48% from GBP81.2 million.
Looking ahead, THG said it remained confident of a return to 9% adjusted Ebitda margins in the medium term, as well as progression through the year via a return to revenue growth across the group.
"Having completed our recent infrastructure investment programme, the group is now delivering operating leverage. Our fulfilment network is becoming increasingly optimised through a combination of robotics automation, AI and the onboarding of new Ingenuity clients utilising existing capacity," said Chief Executive Officer Matthew Moulding.
"The return to group revenue growth in [the fourth quarter] was especially pleasing, and this momentum has continued into 2024."
THG shares were trading 0.2% lower at 67.75 pence each in London on Wednesday morning.
By Holly Beveridge, Alliance News reporter
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