Ecommerce giant THG plc saw its revenue return to growth in the last three months of 2023 as it halved its losses over the year.
The business said in its 2023 FY results that annual revenue was down 8.7% to £2bn, but returned to growth in the final quarter, while pre-tax loss was halved from £549.7m to £252m over the year.
The business is split into its nutrition, beauty and Ingenuity arms, all of which saw revenue decline during the year.
It made 45.8% of its sales in the UK, up from 42.9% the year before, and called the country its “key growth market.”
Continuing adjusted EBITDA stood at £120.4m (+6.1% margin) vs. January 2024 guidance of “above £117.0m,” while group adjusted EBITDA was £114.1m, +78% YoY (FY 2022: £64.1m). Free cash flow breakeven was also achieved, while a strong balance sheet showed £600m of cash and facilities.
Chief executive Matthew Moulding said: “In 2023, we made material progress against our strategic priorities, delivering significant profit growth following the support for our consumers through the cost-of-living crisis in 2022.
“Having completed our recent infrastructure investment programme, the group is now delivering operating leverage.
“Our fulfilment network is becoming increasingly optimised through a combination of robotics automation, AI and the onboarding of new Ingenuity clients utilising existing capacity.
“The return to group revenue growth in Q4 was especially pleasing, and this momentum has continued into 2024.”
