North West tech group, THG, has announced revenues of £1.1bn for the first half of the year.
The company, which uses its proprietary tech platform to take brands direct to consumers reported an adjusted EBITDA of £32.3m, but operating losses of £89.2m.
Matthew Moulding, CEO of THG said he was “proud” to deliver a 12.3% increase in growth against a “challenging global backdrop.”
“The Group continues to deliver significant infrastructure development, which in turn has supported market share growth through improved localised service as well as substantial operational savings. The first half of this year saw continued strong customer metrics, with active Beauty and Nutrition customers now 113% higher on a three-year basis.
“Our highly engaged, global customer base, with high repeat rates, is a key asset of the business. Recently achieving 10 million app downloads from launch in early 2020, further strengthens the Group’s relationship with consumers and our first party data advantage.
“Against the tough macro-economic backdrop, we have prioritised our loyal customer base, over maximising near term gross margins focusing on retention and growth of consumers. The strength, resilience and agility of our vertically-integrated business model, coupled with automation, has enabled us to significantly invest in price protection for consumers currently facing unprecedented cost-of-living challenges.”
He added the group was “confident” that it would “remain on track to be cashflow positive in 2024.”
Board Appointments
The group has also made 2 new independent Non-Executive Director appointments.
Gillian Kent is the former Managing Director of MSN UK, where she was responsible for creating one of the UK’s largest online services businesses. She was also CEO of real estate portal, Propertyfinder. Her other non-executive director roles include Ascential plc, Mothercare plc, Marlowe plc and SIG plc.
She will be joined by Dean Moore previously Chief Financial Officer at Cineworld Group plc, N Brown Group plc, T&S Stores PLC and Graham Group plc.
Performance
In today’s interim results, the group reported that its THG Beauty division had doubled in size since the IPO, while its Nutrition operation is growing in the US, with the recent launch of its animal-free, Whey Forward brand.
Myprotein has also entered the frozen category through a major partnership with Iceland Foods.
On THG Ingenuity it stated that despite “capital hesitancy” that the “long-term outlook for e-commerce penetration remains very positive.”
Seven “of the top 20” food and beverage brands are now partnering with the platform – these include General Mills, Mondelez International, Kraft Heinz, Nestle and Coca-Cola European Partners.
Looking forward it aims to step-up to the premium segment of the main market of the London Stock Exchange next year.
