Hut Group acquisitions boost profits and sales

Gross profit shot up 51% to £318m, with EBITDA rising 38% to £69m, in the year to December 31, 2017.

Sales soared 47% to £736m. International sales were up 62% to £512m, constituting 70% of the group’s sales, and The Hut Group reported “strong” growth in brand revenues, with 58% of sales coming from own brands.

The Hut Group has been on the merger and acquisition warpath recently, snapping up beauty brands Espa, Illamasqua, Australian business RY.com.au and Europe’s largest subscription beauty box supplier Glossybox.

It also acquired a digital content agency, Hangar Seven, and a web-hosting business, UK2.

This month, it increased its banking facility to £600m for use in “significant strategic initiatives” and further potential M&As.

The Hut Group invested £25m in its proprietary technology platform, THG Ingenuity, in a bid to enhance functionality and globalisation capability and nearly doubled it workforce, adding 1,884 roles over the year. It now employs over 4,000 people. It plans to create another 2,000 jobs this year.

It also spent £39m capex on manufacturing, distribution, supply chain and office infrastructure. This included two food production and distribution facilities in Cheshire and Kentucky, a production and logistics centre in Poland and a new head office in Manchester, which will be operational in two years’ time.

Founder and chief executive Matt Moulding said: “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.

“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.”