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THG PLC on Wednesday remained optimistic of its prospects for the year ahead, after loss narrowed in 2023 despite a drop in revenue. For the year ended December 31, the Manchester-based e-commerce platform reported a pretax loss of £252.0 million, narrowed from £549.7 million a year prior. Operating loss narrowed to £185.4 million from £495.6 million, primarily due to the one-off non-cash impairment charge of £275.4 million in 2022 that did not reoccur in 2023. Revenue was £2.05 billion, down 8.7% from £2.24 billion the previous year. According to THG, this was driven by ‘the positive action to discontinue loss making categories’. However, it did note that revenue trends have continued to improve in the current year, with ‘notable momentum’ in the Beauty segment. Group adjusted earnings before interest, tax, depreciation and amortisation were £114.1 million, up 78% from £64.1 million, while continuing adjusted Ebitda was £120.4 million, up 48% from £81.2 million. Looking ahead, THG said it remained confident of a return to 9% adjusted Ebitda margins in the medium term, as well as progression through the year via a return to revenue growth across the group. ‘Having completed our recent infrastructure investment programme, the group is now delivering operating leverage. Our fulfilment network is becoming increasingly optimised through a combination of robotics automation, AI and the onboarding of new Ingenuity clients utilising existing capacity,’ said Chief Executive Officer Matthew Moulding. ‘The return to group revenue growth in [the fourth quarter] was especially pleasing, and this momentum has continued into 2024.’ THG shares were trading 0.2% lower at 67.75 pence each in London on Wednesday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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