THG posts £495.6 million operating loss
THG has posted an operating loss of £495.6 million after it faced increased costs relating to international delivery and a strategic review of its stock. This compares to a loss of £137.5 million a year earlier.
In the year to 31 December, group revenue edged up 2.7% to £2.24 billion with international trade accounting for 57% of sales.
Matthew Moulding, chief executive of THG, said: “We continue to make good progress on executing our strategy of building a leading digital-first consumer brands group, powered by our own technology and global fulfilment operations. I am hugely proud of the THG team who have delivered another record revenue performance.
“While FY 2022 adjusted EBITDA was not where we planned at the start of the year, this was largely the result of our strategy to minimise the impact of inflation upon our customer base. This investment in their retention, and longer term growth, was the principle driver behind the reduction in gross margin.”
Giving an update on trading in the new financial year, THG said sales had declined by 8.6% in the three months to the end of March, although profitability had improved.
Moulding added: “We are nearing completion of a three-year major infrastructure investment programme. While this has inevitably involved significant investment and transition costs, the less than 2-year return on investment is pleasing. The global capability it now provides gives us increased confidence in our ability to continue to capture market share whilst accelerating both profitability and free cash flow generation.”
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