The Hut Group (THG) has reported a rise in sales, with total sales exceeding £1 billion as a result of new brand acquisitions and investment in technology. The Group remains focused 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. The Manchester-based business has also doubled down on its commitment to wider social responsibility and plays a pivotal role in the community, most notably in the North West of England.

Financial Highlights:

• Group sales up 24% to £1,140MM .
• International sales now represent 66% of Group sales.
• Gross profit increased by 22% to £511MM .
• EBITDA up 22% to £111MM .
• 50% of Group sales coming from own brands.
• Group 3-year sales CAGR of 31% and 3-year EBITDA CAGR of 31%.
• Agreed new financing facilities of €1bn, to drive major investments in Beauty, Nutrition, Technology, and Infrastructure.
• Over 20% of THG’s share capital has been awarded to employees since the Group was founded, demonstrating THG’s commitment to people and staff sharing in the value they help to generate.
• Increased capital investment across Technology & Infrastructure projects, including Manufacturing, Logistics, and Offices—totaling more than £1bn since 2016.

M&A Activity and Strategic Partnerships:

• Strategic investment to acquire luxury natural haircare brand Christophe Robin, to complement THG’s international Beauty offering.
• In April 2020, THG Ingenuity announced a major agreement with Nestlé Health Science (NHSc) to deliver a fully serviced, global e-commerce 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 Ingenuity:

• Over the last three years, THG has invested more than £600MM to enhance its leading proprietary e-commerce technology engine, while significantly expanding its client base of leading international retailers.
• THG also continued to invest to develop its physical assets, including over £60MM in 2019 on a freehold-owned Polish Fulfilment Centre, which provides a full Brexit hedge and complements its facility in Cheshire, England.
• THG Ingenuity’s global fulfillment network now consists of 12 centers across the world, serviced by over 150 different final-mile delivery options.
• THG Ingenuity’s technology platform is continually enhanced by a team of more than 400 in-house technical experts, who delivered over £37MM of enhancements to the platform in 2019 alone, which range from courier and payment method integrations to functionality development and security enhancements.

THG Experience:

• THG 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 center. 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.

Matthew Moulding, founder and Chief Executive Officer of The Hut Group, 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 fulfillment 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.”