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THG acquires luxury natural haircare brand Christophe Robin

The Hut Group (“THG” or the “Group”), one of the world’s leading online beauty and wellbeing businesses, has today announced the acquisition of Christophe Robin, a luxury natural haircare brand.

Established in Paris in 1999 by its namesake, celebrity colourist Christophe Robin, the brand aims to emphasise a women’s natural beauty by maintaining scalp health, nourishing hair and protecting colour. The brand sits within an established and fast growing segment of the beauty industry and has seen its sales increase by over 40% for each of the last two years.

Christophe Robin products are designed to be kind to the scalp and hair, formulated with over 80% natural ingredients – and are free from parabens, silicone, SLS, oxidants, ammonia and not tested on animals.

The brand also has a strong visual identity linked to its Parisian heritage and epitomises the notion that French women are renowned around the world for their sophisticated approach to beauty. This identity is used to define a new vision of luxury in haircare, based on ‘authentic savoir-faire, with a touch of originality’.
With more than 70 products across 10 product ranges, Christophe Robin is stocked in multiple countries including the UK, US, Europe and Asia through notable retailers such as Sephora and Space NK. The brand is also available direct to customers online through www.christophe-robin.com and THG-owned www.lookfantastic.com.

The acquisition represents a further strategic investment in THG’s international Beauty offering. THG is Europe’s largest online retailer of premium beauty products – including MAC, Bobbi Brown, Estée Lauder and Lancôme – through Lookfantastic.com, and also owns a host of luxury beauty brands including ESPA, Mio Skincare, Mama Mio, Grow Gorgeous, Illamasqua and Ameliorate.

Matthew Moulding, Chief Executive Officer of The Hut Group, commented: “Christophe Robin products are a perfect addition to THG’s portfolio of brands, with a strong ethos and positioning within the haircare market.

“We will leverage our world-class e-commerce platform, THG Ingenuity, and our global marketing structure to take the brand to new customers across the world. Natural beauty products are continuing to take the industry by storm and combined with the brand’s expertise in luxury haircare, this is an exciting time for us to invest in the brand, product development and people, to deliver the next stage of growth.”
Christophe Robin, Founder, commented: “Together with my CEO and partner Géraldine Hieronimus, we are proud of growing the Christophe Robin brand by an average of over 40% over the last three years and exporting our unique natural luxury French hair care products to more than 35 countries. I am excited to see my brand continue its adventure going forward with The Hut Group. I am looking forward to seeing Christophe Robin continue to innovate and grow with The Hut Group’s strong distribution resources.”

The Hut Group were advised by DLA Piper, Deloitte and EY. Michel Dyens & Co. acted as exclusive financial advisor to Christophe Robin.
Christophe Robin’s salon, located 16 rue Bachaumont in Paris, remains independent and is not included in this acquisition.

The Hut Group acquires global translation services provider, Language Connect

The Hut Group (“THG or the “Group”), one of the world’s largest online Beauty & Wellbeing businesses, is pleased to announce the acquisition of Language Connect, a leading language translation and localisation services company.

Founded in 2003 by Ben and Iwona Taylor, Language Connect has grown rapidly to become a leading international language services provider. The business has a diverse blue-chip customer base of over 900 organisations globally, including Thomson Reuters, Twenty First Century Fox and Norton Rose Fulbright, as well as several of the world’s largest market research organisations. It also has an international footprint, with offices in London, New York, Singapore, Dubai, Munich and Melbourne.

The acquisition provides a unique opportunity for THG to deliver a step change in its translation capabilities, supporting its continued international growth.

Language Connect represents a significant addition to THG’s proprietary technology platform, THG Ingenuity, which underpins and powers the Group’s systems and ever-growing portfolio of Health and Beauty brands.
THG remains committed to the service and growth of Language Connect’s extensive global customer base, and will also offer Language Connect’s services to its existing THG Ingenuity clients, which include household names such as Nintendo, Honda and the Daily Mail Group.
Matthew Moulding, Founder and Chief Executive Officer of The Hut Group, said: “I’m delighted to welcome the Language Connect team to THG.

In Language Connect, we have made a significant investment which supports our international growth plans; making translation more efficient for our customers around the globe. It also marks another step in the growth of our proprietary technology platform, THG Ingenuity, following the acquisitions of UK2 and Hangar Seven last year. We expect to make additional investments this year to grow the platform further.”

Ben Taylor, Co-Founder of Language Connect said: “I am thrilled that Language Connect is becoming part of THG and integrated into its Ingenuity platform. I have closely followed the growth of THG as one of the UK’s leading technology companies and particularly its impressive expansion into international territories. I am confident in the Group’s ability to accelerate the business forward and create exceptional opportunities for our people in this exciting new chapter.”

THG retails over 8,000 brands which includes its own leading brands such as Myprotein, ESPA, Grow Gorgeous and Illamasqua. Operating over 160 localised websites across 35 languages and 42 currencies, the Group’s platform receives over 500 million visits annually.
THG and Language Connect were both awarded the prestigious Queen’s Award for Enterprise this year in the International Trade Category.

THG Annual Report 2017 – record breaking year for sales, investment and international growth

THG Annual Report 2017 – record breaking year for sales, investment and international growth
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017.

The Hut Group (“THG or the “Group”), one of the world’s largest online beauty and wellbeing businesses, today announces its results for the year ended 31 December 2017.

Financial Highlights

  • Group sales up 47% to £736m (2016: £501m)
  • International Sales up 62% to £512m (2016: £317m), constituting 70% of Group sales
  • Gross Profit increased by 51% to £318m (2016: £211m)
  • EBITDA1 up 38% to £69m
  • Strong growth in brand revenues, with 58% of Group sales coming from own brands
  • Group sales CAGR of 49% and EBITDA CAGR of 52% for the period 2015-2017
  • In May 2018, the Group increased its banking facility to £600m, for use in significant strategic initiatives and further potential M&A

Operational Highlights

  • £164m in strategic acquisitions during the year, enhancing the Group’s end-to-end retail ecosystem, building its brand proposition, and developing the geographical reach of its beauty supply chain. Acquisitions included Hangar Seven and UK2 – a digital content agency and web-hosting business respectively – ESPA, Illamasqua, RY.com.au and Europe’s largest subscription beauty box supplier, GLOSSYBOX
  • £39m of capex was spent on physical infrastructure projects including manufacturing, distribution, supply chain and office facilities. This included two food production and distribution facilities which became fully operational in 2017 – a 1m sq. ft. Cheshire based facility (Omega) and a US facility in Kentucky – in addition to the commissioning of a production and logistics centre in Poland, bringing next-day delivery to continental Europe
  • £25m of investment in the Group’s proprietary technology platform, THG Ingenuity, further enhancing its functionality and globalisation capability. THG’s platform now operates on 35 languages and 42 currencies, is supported by 32 payment options and delivers to 193 territories
  • Work begun on a new c870,000sq. ft. Head Office at Manchester Airport. The work will be completed in stages over the next two years and will ultimately house around 10,000 employees

Talent Highlights THG invested heavily in talent during the year, creating 1,884 jobs and growing its global workforce to over 4,000 colleagues by year end. The Group also invested in its Talent Function, including internal communications, leadership academies and office infrastructure. Through its in-house leadership development platform, THG Academy, the Group is building the next generation of business leaders.THG now employs colleagues representing 66 nationalities and working in offices located in 10 cities around the globe, in the UK, USA, Europe and Australia. The average age of a THG employee is 29. THG expects to create a further 2,000 new jobs in 2018.Matthew Moulding, Chief Executive Officer of The Hut Group, commented: “2017 was a year of significant development and growth for The Hut Group, as we invested in our infrastructure, our technology platform, our people and our brands. THG is now firmly a global player and it is particularly pleasing to see over 70% of Group sales coming from overseas, and 58% of total sales being of our own brands.“During the year our acquisitions of Hangar Seven and UK2 saw us develop further our propriety technology platform, THG Ingenuity, and investments in key brands such as ESPA, Illamasqua and GLOSSYBOX further extended our leading beauty offer. In addition, our job creation continued apace and we welcomed over 1,800 colleagues to The Hut Group around the world.“With our growing, talented workforce, our leading brands and our cutting-edge technology and infrastructure, we look forward to a further year of growth in 2018.”THG was also awarded the prestigious Queen’s Award for Enterprise this year in the International Trade Category.Notes to Editors1Adjusted EBITDA is operating profit before depreciation, amortisation, share based payments and exceptional items

The Hut Group crowned with The Queen’s Award for Enterprise

The Hut Group (THG) is proud to announce that it has been awarded the prestigious Queen’s Award for Enterprise for 2018.

THG was crowned in the International Trade category, having grown its overseas revenues by 89% (to £316m) in the year to 31 December 2016, the most recent year for which numbers have been reported. The Group now ships to 195 destinations worldwide, selling products through its 166 sites in 35 languages. THG employs over 4,000 people and has distribution centres in Cheshire and in Kentucky, USA; the Group is currently constructing a third distribution centre in Poland, bringing next-day delivery on its products to continental Europe.

The Queen’s Awards for Enterprise were first established by Royal Warrant in 1965, originally going by the title The Queen’s Award to Industry. The winners are announced each year on April 21st, Her Majesty the Queen’s birthday, and are published in the London Gazette.

Commenting, Matthew Moulding, Founder and CEO of The Hut Group, said:

“We are delighted to be recognised as part of The Queen’s Awards for Enterprise, which celebrates the wealth of business talent that the UK has to offer. Receiving the prestigious International Trade award is testament to the ambition, innovation and dedication of our people in developing The Hut Group into an internationally renowned, British business.”

Click here for more information regarding our award.

For more information, please contact:

Viki Tahmasebi

Group Head of PR, The Hut Group

About The Hut Group

The Hut Group (THG) is a nimble giant with a start-up culture, led by founder Matthew Moulding. Built on a foundation of proprietary industry-leading technology, a world-class team and a scientific approach to building global brands.  THG is fast becoming the world’s most influential online retail organisation.

In the year to 31 December 2016, THG grew Group Sales by 50% (to £501m), with International Sales growing by 89% (to

£316m). EBITDA grew 67% to £50m. Over half of THG’s sales now come from own brand products.

Part of the Northern Powerhouse near Manchester, it operates over 140 highly profitable websites retailing premium, non-perishable FMCG products direct to consumers across the fast growing, global Health & Beauty markets.

Pioneering Technology Platform

THG is a major British technology success story. Its in-house team design, develop and build bespoke proprietary technology that is used by hundreds of millions of people worldwide across 190 + countries.

Its unique platform helps the Group dispatch 37 million items to customers across the world, taking THG to the top of the Sunday Times profit track for a second consecutive year.

The platform was recognised as E-tailer of the Year by Retail Week for “Becoming Europe’s fastest growing E-tailer, through leveraging proprietary technology, data and a disruptive model to deliver own brand products direct to global consumers.”

Talent

The Hut Group is the #1 place for ambitious young talent that want to run a business or build industry leading technology.

The Hut Group (THG) post record sales, international growth and talent investment for 2016

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.

Financial Highlights

 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

Operational Highlights

  • £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

 

TALENT HIGHLIGHTS

 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.”