Turnover tops £2bn at Matthew Molding’s THG but profit margins fall short of market expectations

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Revenue topped the £2bn mark at beauty, wellness and software giant THG in 2021, while the group expects a further 25% increase in 2022.

The Manchester-headquartered company reported revenue of £2.178 billion for the 12 months to December 31, 2021, compared to £1.613 billion in 2020.

Its beauty division’s revenue fell from £751.6m to £1.116bn, nutrition fell from £562.3m to £659.5m, THG OnDemand fell from £101.3m to £128.1 £m while THG Ingenuity went from £137.3m to £194.3m.

READ MORE: THG announces plans to create beauty division in 2022

During the fourth quarter, THG Group revenue rose from £559.8m to £711.7m, while increases were also reported across all divisions.

The group added that its adjusted EBITDA margin for 2021 is expected to be between 7.4% and 7.7%, compared to market expectations of around 7.9%, due to “adverse foreign currency movements “.

In a statement to the London Stock Exchange, THG said “Momentum going into 2022 remains strong across the group following an acceleration in organic revenue growth in the fourth quarter compared to the third quarter of 2021 and with a significant pipeline of site launches within THG Ingenuity”.



Matthew Molding, founder of THG

He added that while the start of 2022 is expected to be “a comparably tougher time” due to global lockdowns in the first half of 2021 and record high commodity prices within its nutrition division, the board expects its 2022 revenues increase between 22% and 25%.

THG said its 2022 Adjusted EBITDA margins are expected to improve throughout the year as “we see the benefits of 2021 investments in automation offsetting inflationary pressures, in addition to the growing revenue mix generated by Ingenuity Commerce”.

He added that the staggering should be weighted to the second half of the year, “given movements in commodity prices, transportation costs and currencies.”



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Founder Matthew Molding said: “We are delighted to report significant growth across all divisions during the peak fourth quarter trading period and to have achieved record annual sales of £2.2 billion. .

“The operational resilience and performance of our Ingenuity infrastructure has been a strong point, shipping over one million units per day at peak times.

“The investment we’ve made in automation in the UK has delivered year-on-year efficiencies, and we’re on track to launch our first AutoStore installation in the US in during the second quarter of 2022, completing the six warehouses added to the network on three continents in 2021. .

“2021 marked our first full year as a public company and I would like to express my gratitude to all THG colleagues for their dedication and hard work in helping us achieve such a strong performance for the year.

“Despite challenging conditions, we have grown our revenues and expanded our business model, in particular THG Ingenuity, well ahead of the expectations expressed when we went public 16 months ago.



Beauty THG
Beauty THG

“At the same time, we have welcomed approximately 3,000 new employees across the world to the group, the majority of whom are in the UK, and have completed many transformation projects, including the opening of our campus one-square-metre British technological icon, ICON.

“During the year, the group also invested around £1 billion in infrastructure, technology and mergers and acquisitions to further develop the long-term growth prospects of our core business divisions.

“We remain committed to our investment strategy for growth through our global execution network and technology platform.

“The new year has started well and we remain confident in delivering on our strategic growth plans in 2022 and beyond.”

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