15th Apr 2021 08:22
(Alliance News) - THG PLC on Thursday reported "strong" revenue growth throughout 2020, making it a "monumental" first year as a public company following its September listing with a market value of GBP5.40 billion.
The Manchester-based firm, which owns online retailing platform the Hut Group, said 2020 revenue reached GBP1.61 billion, up 42% from GBP1.14 billion in 2019.
THG has operations within its Beauty, Nutrition, OnDemand and Ingenuity arms. It owns brands such as online cosmetics company Lookfantastic, wellness unit Myprotein and its Ingenuity e-commerce technology platform, which serves blue-chip customers such as Nestle SA, Walgreens Boots Alliance Inc and Procter & Gamble Co.
THG Beauty saw 57% annual revenue growth. THG Nutrition reported a 36% hike, and Ingenuity had a 7.3% increase. THG said in January its Ingenuity arm is partnering with GlaxoSmithKline PLC to assist the pharmaceutical firm with a roll-out of a vitamins portfolio in the UK. THG OnDemand, formerly THG Lifestyle, reported a 69% annual revenue growth.
However, THG's 2020 pretax loss widened to GBP534.6 million from GBP45.2 million in 2019, and it incurred an operating loss of GBP481.8 million, widening from GBP11,790.
THG said this was partially driven by events that resulted in cash outflows and non-cash charges. It explained that the largest charge was related to the vesting of share option schemes after the strong share price growth experienced after stock-market admission in London.
"We approach financial 2021 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," said Chief Executive & Chair Matthew Moulding.
THG said that following a "strong" end to 2020, sales momentum has continued into 2021 across all divisions and has been ahead of expectations.
"Revenue growth for the first-quarter of 58.2% is broad-based, with stable margins in line with guidance," it added.
THG said its recently upgraded 2021 revenue growth guidance of 30% to 35% remains unchanged, with stable adjusted earnings before interest, tax, depreciation and amortisation margins.
"Capital expenditure for the group is expected to be 10% to 12% of revenue compared to 15% in 2020, driven by an acceleration of growth plans to meet the demands of our own brands, Ingenuity clients and elevated sales levels entering 2021. As per the guidance communicated at IPO, capital expenditure is expected to fall to 5.5% to 6.5% over the medium term," THG said.
Shares in THG were down 2.6% at 685.50 pence in London on Thursday.
By Zoe Wickens; [email protected]
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