Hut Group smashes £1bn sales barrier and announces €1bn finance facilities

The Hut Group, the Manchester-based global technology and online consumer brand group, announced annual sales of more than £1bn today and new €1bn finance facilities.

Publishing annual results for the year ended December 31, 2019, it revealed a 24% jump in group sales to £1.140bn.

It said international sales now make up 66% of group revenues.

The gross profit increased by 22% to £511m, while EBITDA was up 22% to £111m.

There was continued strong growth in own brand revenues, with 50% of group sales coming from own brands.

The group has also agreed €1bn of new financing facilities to drive major investments in beauty, nutrition, technology and infrastructure.

It said more than 20% of THG’s share capital has been awarded to employees since the group was founded, demonstrating its commitment to people and staff sharing in the value they help to generate, as well as increased capital investment across technology & infrastructure projects, including manufacturing, logistics and offices, totalling more than £1bn since 2016.

Among the operational highlights for the reporting period was the creation of 1,500 jobs during 2019, largely in the North West, taking the group’s total worldwide workforce to more than 7,000 people.

Over the past three years THG has invested more than £600m to enhance its leading proprietary ecommerce technology engine, while significantly expanding its client base of leading international retailers.

THG also continued to invest to develop its physical assets, including more than £60m in 2019 on a freehold-owned Polish fulfilment centre, which provides a full Brexit hedge and complements its facility in Cheshire.

THG Ingenuity’s global fulfilment network now consists of 12 centres across the world, serviced by more than 150 different final mile delivery options.

In April 2020, THG Ingenuity announced a major agreement with Nestlé Health Science (NHSc) to deliver a fully-serviced, global ecommerce platform, to internationally scale a number of NHSc’s brands.

The partnership will provide NHSc with a single service-point, through the THG Ingenuity platform, to launch and scale brands online in 20 territories across North America, Europe and Asia.

THG said the group maintained its focus on becoming a global leader in connecting content creators and influencers with brands, as part of its innovative approach to consumer engagement in both the online and offline environment.

It continued to invest in its experiential marketing infrastructure, acquiring two prestigious Manchester property assets: Eclectic Hotel Group, which comprised the King Street Town House and Great John Street Hotel, and 100 King Street, an iconic 12,000 sq ft building, offering unique entertainment and event space in Manchester city centre.

The properties build on THG’s existing portfolio and are used to host immersive influencer and brand partnership events.

THG continued to grow its partnership network which now features more than 4,500 creators working across markets and platforms. The expanding network helps THG to drive deeper relationships and continued customer engagement with its global customer base.

On April 2, 2020, THG announced a £10m aid package to support vulnerable communities, key workers and emergency services in Manchester, the UK and other markets during the COVID-19 crisis. This was followed by an additional donation of 3.5 million units of PPE (Personal protective equipment) to the health and care system in Greater Manchester, a project costing more than £2m.

Matthew Moulding, founder and chief executive, said: “It has been a year of significant progress across the group.

“We have continued to make huge investments to develop our infrastructure, technology, brands and people, which continue to deliver substantial growth, with group sales of £1.1bn in 2019.

“THG has continued to develop our end-to-end technology platform, THG Ingenuity, which powers both our own brands and a growing number of major global consumer groups.

“We have significantly expanded our global fulfilment capability, broadening our reach to customers in 169 countries.

“THG has also made important investments in our THG Experience portfolio, expanding the offering of our influencer platform, bringing over 5,000 influencers currently to both our own and our partner brands.

“Our people are the key to our success, and we have continued to invest in our talented teams.

“The development of the THQ business campus continues at pace and demonstrates our commitment to investing in our people. THG has an excellent platform for growth with an outstanding portfolio of prestigious brands, powered by THG Ingenuity.”