The Hut Group Limited (“the Group”, “THG”), one of the world’s largest and fastest growing online Health and Beauty retailers and brand owners, today announces its results for the year ended 31 December 2016.
Group Sales up 50% to £501m (2015: £334m)
- International Sales up 89% to £316m (2015: £167m), constituting 63% of Group Sales, rising to over 70% in Qtr 1 2017
- Gross Profit increased by 67% with gross margin up 424bps compared to 2015
- EBITDA* up 67% to £50m
- A substantial increase in cash generated from operations, with 175% of EBITDA at £87.6m
- Strong growth in brand revenues, with over half of Group Sales in Own Brand (52%)
- Group Sales CAGR of 29% and EBITDA CAGR of 63% for the period 2011 to 2016
- £174m of cash and cash equivalents
- A £345m banking facility for significant strategic initiatives
- £252m of Investment in growth projects throughout the year, including £17.0m of share buybacks
- £153m of capital was deployed in physical infrastructure projects including manufacture, distribution, supply chain and office accommodation. This included two food production and distribution facilities commissioned – a 1m sq ft Cheshire based facility (Omega) and a Kentucky based US facility
- £91m of investment in the Group’s technology platform to further enhance its functionality and globalisation capability. The Hut Group’s Platform now operates on 47 languages and 30 currencies, is supported by 23 payment options, delivering to 195 Postal Territories with 27 final mile couriers
- £63m of acquisitions targeted at specifically developing the Group’s own brand proposition as well as geographical reach of its beauty supply chain – with the addition of the predominantly female-focused Ideal collection of nutrition brands to the Health Division and the acquisition of Grow Gorgeous, a premium haircare
- Acquisition of online retailers Skinstore.com and SkincareRX.com, increasing the Group’s collection of third-party brands to over 750 and enhancing its global supply chain
- 1,200 UK jobs created in 2016 alone, taking the total workforce to 3,100 by the end of the year
The Hut Group is the number one place for ambitious young talent, having invested heavily in hiring and developing talented people to drive rapid expansion with:
- 1,200 new UK employees, including 400 graduates
- The Group launched THG Academy, the Group’s in-house leadership development accelerator aimed at creating global e-commerce leaders internally from a world-class talent pool – with 800 employees signing up to the scheme in the first quarter
- The Group expects to generate a further 3,000 new jobs over the next 2 years
Matthew Moulding, Chief Executive Officer of The Hut Group, commented:
“I am delighted to report another milestone year for The Hut Group, with THG firmly cementing its place as a truly global business, and driving further our ambition to be the clear No.1 in online Health & Beauty across the world.
“In 2016, we launched over 100 websites across the Group, significantly extending our international reach, which was further highlighted by delivering international sales growth of 89%. We also continued our evolution of our health and beauty offering, with the acquisitions of Grow Gorgeous, Skinstore.com, SkincareRX.com, and the prestigious Hale Country Club, the latter providing us with the opportunity to develop a global centre of fitness and wellbeing excellence. In addition to these initiatives, towards the end of 2016, we further expanded our presence in global nutrition with the acquisition of the US-based Ideal brands.
“As an addition, post year, we completed the acquisition of Hangar Seven, a leading British content creation business for video, photography and branding. With customers demanding to view creative content largely through video, we are investing heavily in creative resources to ensure we lead the way in delivering the best possible user experience across all corners of the world. This move, in particular, broadens our THG Platform proposition and complements our world-class technology platform with market-leading content and brand creation.
“2016 was a step change in investment for THG, in infrastructure, technology and talent, with £250m of investments made through the year and 1,200 UK jobs created, taking the workforce to 3,100 people. We have an extremely powerful foundation and a strong talent pool with which to catapult us through 2017 to deliver another landmark year for the Group.”