THE WHAT? The Hut Group saw revenue increase an impressive 41.5 percent from £1.14 billion to £1.61 billion in 2020 thanks to the pandemic-prompted shift to digital channels.
THE DETAILS Gross profit stood at £729.6 million for FY2020, a 42.8 percent growth on the prior year with a gross profit margin of 45.2 percent.
Beauty formed the lion’s share of sales, representing 47 percent – up from its 2019 share of 42 percent. In total, the unit racked up £752 million in sales, up 57 percent on the prior year. Customer orders grew by 4.8 million over the course of the 12 months.
THE WHY? CEO Matthew Moudling commented, “We approach FY21 with confidence having navigated successfully through a milestone year in the Group’s history. I am particularly proud of how our people have responded to the changing environment, displaying determination to make a difference across all aspects of our operations from new product development, to digital marketing, M&A, fulfilment and THG (eco).
“Our global D2C brand building capabilities and proprietary Ingenuity technology platform has enabled us to further develop both our external brand relationships, and our expanding portfolio of Beauty and Nutrition own brands. Leveraging the platform to build an impressive client base of blue-chip consumer brands has been a highlight of the year, supported by encouraging momentum in the current year Ingenuity Commerce pipeline.
“Management’s purpose for the IPO was to step change THG’s access to funding in order to capitalise on Covid-19 accelerated market changes. As we progressed through 2020, those changes became more apparent in terms of the volume and scale of opportunities available to the Group, as evidenced by the c. £400m committed to acquisitions since IPO, most notably the acquisition of Dermstore in the US.”