The Hut Group builds serious infrastructure

The Hut Group (THG) continues to expand its business into new areas through acquisitions that have helped it reach the milestone of hitting annual sales of £1 billion for the first time.

Although the company’s proprietary eCommerce technology platform remains the heart of the business there has been a gradual move beyond this core as THG builds itself into a broader consumer-facing operation.

As the company reported sales up 24% to £1,140 million and EBITDA up 22% to £111 million – for the year ended December 31 – it highlighted its recent acquisition of two luxury hotels in Manchester and a contract signed with Nestle Health Sciences to launch brands into 20 global territories.

Alongside these deals THG has continued to commit heavy investment in its core online beauty and wellness operation – where 50% of sales are now derived from own brands – with the acquisition of the Christophe Robin haircare brand and the build out of a greater fulfilment capability including physical assets acquired in Poland. This takes its network to 12 distribution centres located around the world.

Matthew Moulding, founder and CEO of THG, said: “THG has continued to develop our end-to-end technology platforms, THG Ingenuity, which powers both our own brands and a growing number of major global consumer groups. We have significantly expanded our global fulfilment capability, broadening our reach to customers in 169 countries.”

Further expansionary plans are clearly afoot for THG as it also exchanged contracts on a new global headquarters campus during the financial year. The first phase is for space totaling 288,000 sq ft but its two further phases that would take it to one million sq ft highlight the intent of the THG management to build a true Northern Powerhouse.