The Hut Group, also known as THG, has reported impressive revenue growth in its Q3 trading statement. The company saw a 38% year-on-year increase in group revenue, reaching £507.8 million. On a two-year constant currency basis, the growth was even more impressive at 93.8%. THG’s Ingenuity Commerce revenue for 2022 is projected to rise by 20%-25%, reaching a range of £108 million to £112 million. This growth is significant for THG as it focuses on expanding its Ingenuity unit. However, the beauty category remains a key focus for the company. In the three months leading up to September 30, THG Beauty revenue increased by 57.2% to £247.6 million, almost doubling on a two-year basis.
THG’s Ingenuity unit, which provides tech solutions to help brands establish an online presence, also experienced revenue growth. In Q3, Ingenuity revenue rose by 44.1% to £51.1 million. THG highlighted the close connection between its beauty operations and the Ingenuity unit. Following the acquisition of Cult Beauty in August, the brand was successfully migrated to the Ingenuity platform, resulting in immediate improvements such as increased conversion rates, higher average order values, faster page load times, and reduced technology costs. The re-platforming also led to the successful launch of the Cult Beauty Advent calendar, selling over 11,500 units in just two hours without any website downtime.
Ingenuity Commerce continued to gain momentum in the third quarter, with a reported revenue growth of 131% year-on-year. The company acquired a record number of 44 new clients, spanning various consumer sectors and entering agreements ranging from three to 10 years. THG offers a range of options, including re-platforming, new market launches, fulfillment-only services, and end-to-end services. Additionally, THG has expanded its reach by supporting Kao Group, a Japanese conglomerate, with a multi-brand, multi-territory rollout in the UK and abroad, including Molton Brown.
Addressing investor concerns about the sustainability of Ingenuity’s revenue, THG stated that 59% of Ingenuity’s revenue in the third quarter was recurring, an increase from 55% in the previous quarter. This reassured investors who were worried about the reliance on non-recurring revenue, such as webstore start-up costs. Furthermore, THG appointed Dr. Andreas Hansson, SoftBank MD, as a new non-executive director, countering concerns about SoftBank’s commitment to the company, as SoftBank is a key investor in THG.
For more information, visit:
THG Official Website
THG Ingenuity
