The Hut Group sees profits boom after last year’s IPO

The Hut Group (THG) has announced a 39 per cent increase in EBITDA (Earnings Before Interest, Tax, Depreciation, Amortization) following on from its IPO last year.

The tech platform also saw a 45 per cent leap in revenues to £958.8 million, over the six months to June 30, up from 95 per cent in 2019.

All of its divisions saw growth with revenues at THG Beauty up by 59 per cent, THG Ingenuity by 42 per cent and THG Nutrition by 30 per cent year-on-year.

The company has upgraded its forecast five times over the past year as the pandemic fuelled ecommerce growth worldwide.

“I am delighted to announce a strong first half performance across all divisions, as we continue to invest significantly in support of our strategic growth ambitions,” THG chief executive Matt Moulding said.

“This investment is across our entire business, including our infrastructure, namely our recently-opened icon campus and our global distribution network, in our Ingenuity platform, in building leading digital brands, and most importantly, in our people.

Following on from its 2020 IPO, the company has outlined plans to list the THG Beauty division on the London stock exchange later on this year.

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The tech arm, THG Ingenuity, which offers its clients direct-to-consumer solutions, launched 50 new end-to-end websites across 22 different countries during the latest interim period.

“In May, we announced the financial and trading partnership opportunity with SoftBank, one of the world’s leading technology investors,” Moulding added.

“We are only at the start of this relationship, but we are pleased to have already established multiple live commercial partnerships between the SoftBank portfolio and our Ingenuity platform.

“We continue to see an acceleration in levels of enquiry from global enterprises looking to leverage the Ingenuity platform, and I believe the global growth opportunity for Ingenuity to be unparalleled.

“Today we also update on the roadmap to separating our key trading divisions, and announce our commitment to list THG Beauty in 2022, which we believe will create further value for our shareholders.

“We are also proud to be launching our 2030 sustainability strategy, outlining our key priorities and commitments in the coming weeks.”

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