THG 'record' FY22 sales driven by repeat customers
THG, the owner of Coggles and MyBag, has reported a 4.1% increase in sales to £2.25 billion for FY22 ending 31 December 2022.
The revenue increase was driven by a 9.4% growth in group's beauty and nutrition divisions. THG Ingenuity, the group's ecommerce solutions offer, also saw sales rise 7.1% to £208.1 million.
Customer indicators including average order values, repeat rates and active customer numbers reported growth. THG said this demonstrates "the resilience of beauty, health and wellness categories, and the continued adoption of digital channels post pandemic, particularly in the UK".
Looking ahead, the group's core divisions are expected to deliver adjusted EBITDA on a continuing basis of £100 million for FY22, reflecting the removal of £20 million of losses from discontinued revenues.
THG also said it has taken “comprehensive cost action to increase profitability” and has decided to review “lossmaking categories and territories within the THG OnDemand division”. The group said this strategic review would lead to a “simplification” of the business.
Matthew Moulding, CEO of THG, said: “In a year that presented numerous challenges across the world, I’m proud that the THG team has delivered another record revenue performance at £2.25 billion.
"Amongst many highlights, I’m especially pleased with the progress of THG Ingenuity, successfully competing with major global technology giants to transform digital operations for global retailers and brands.
“With the completion of the divisional reorganisation, and around £100 million of annual efficiency savings already delivered, the group enters 2023 with strong momentum to achieve substantial margin expansion. We remain highly confident of delivering adjusted EBITDA margins in excess of 9% over the medium-term."