THG, the online beauty and technology group, has announced impressive growth in its preliminary results for the previous year. Not only has the company experienced strong financial performance, but it has also received multiple buyout offers, all of which have been rejected due to undervaluation. CEO Matthew Moulding has confirmed that THG is currently not considering any buyout offers.

In the first quarter of this year, THG saw a significant increase in revenue of 17.2%, reaching £520.2 million compared to the same period last year. This growth can be attributed to the increasing popularity of e-commerce, which has supported the acquisition and retention of new customers. THG’s beauty division, THG Beauty, reported a sales growth of 19.7% year-on-year, amounting to £264.7 million. Furthermore, the division welcomed 24 new partners in the first quarter, further expanding its reach.

THG’s Ingenuity Commerce business, which assists other brands in establishing an online presence, had an exceptional quarter, achieving a revenue of £51.9 million. This represents an impressive 281% increase compared to the previous year. The number of live client websites also grew from 133 to 202, and recurring revenue accounted for 76% of the total revenue.

Looking at the full-year results for 2021, THG reported a substantial rise in revenue to £2.179 billion, compared to £1.613 billion the previous year. The company also managed to narrow its operating loss to £137 million from £481 million and increase its adjusted EBITDA to £161 million from £151 million. However, the margin decreased to 7.4% from 9.3% due to cost headwinds in the second half of the year. Nonetheless, THG remains confident that the pressure is temporary and will diminish over time.

All divisions of THG have showcased growth, with THG Beauty’s performance being particularly noteworthy. The division contributed 51% of the total revenue, up from 47% the previous year, owing to strong organic sales growth and strategic acquisitions. Additionally, THG Ingenuity experienced a 42% increase in revenue, with its commerce division growing by an astounding 135%.

Although international sales accounted for 58% of the total revenue, there was a slight decrease from the previous year due to the exceptional growth in the UK market. Matthew Moulding expressed his satisfaction with THG’s performance, highlighting that the company has surpassed its IPO targets and effectively doubled its size in just two years.

As THG continues to concentrate on its growth strategy, it remains focused on delivering exceptional results. However, the company is also preparing for a potential listing in the premium segment of the London Stock Exchange when the timing is right. With its impressive financial performance and ongoing expansion, THG is well-positioned to solidify its position as a dominant player in the beauty and technology industry.

Useful links:
THG website
London Stock Exchange