THG PLC on Tuesday reported a record group revenue for 2022, with growth in its three core business, and said that it has started a review of the loss-making categories and territories within the THG OnDemand unit.
The U.K. e-commerce company–known as The Hut Group–said that it expects to meet market forecasts for 2022 adjusted earnings before interest, taxes, depreciation and amortization, while backing its medium-term adjusted Ebitda margin guidance of above 9.0%.
It said the core divisions of THG Beauty, THG Nutrition and THG Ingenuity are expected to deliver adjusted Ebitda on a continuing basis of 100 million pounds ($122 million) for the year ended Dec. 31, reflecting the removal of GBP20 million of losses from discontinued revenues.
THG added that it expects to complete the review of the non-core businesses in the first half of this year.
For the year ended Dec. 31 group revenue was GBP2.25 billion compared with GBP2.18 billion in 2021. Within this Beauty revenue grew 6.1%, Nutrition grew 2% and Ingenuity rose 7.1%, while OnDemand revenue fell 17%.
“Core commodity prices used within our Nutrition division have seen significant deflation since their record highs in 2022, giving us confidence in significant profit progression as we move through the year ahead, against a much reduced group cost base,” Chief Executive Matthew Moulding said.
The company had GBP640 million of cash and facilities at Dec. 31.
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