The THG PLC (LON: THG) share price dropped 3.74% after releasing its annual report for the year ended 31 December 2022. Some of the report’s highlights included the company’s record revenues of £2.24 billion, slightly improving from the £2.18 bn recorded in 2021.
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The company also revealed that it invested heavily in its price strategy, which affected its gross margins, but will likely contribute significantly to its customer retention efforts. The firm noted that its THG Ingenuity platform has witnessed significant momentum after shifting its focus to higher-value contracts.
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THG also completed the planned divisional reorganisation in 2022, delivering significant cost savings in the past financial year. The gains will also spill over into the current financial year and will remain in place into the future.
The company simplified its business structure, leading to a strategic review of loss-making categories and territories. THG expressed confidence that the steps taken during the strategic review will underpin its profitability during the 2023 financial year.
THG also entered into strategic alliances and partnerships across its THG Nutrition, THG Beauty and THG Ingenuity.
THG Holding’s CEO Matthew Moulding said: “2022 was unquestionably the most challenging global environment we’ve seen since founding THG nearly 20 years ago. An extraordinary backdrop of runaway inflation, rapidly rising interest rates, and major geopolitical events created significant macroeconomic and consumer uncertainty. I’m incredibly proud of how THG and the team responded to these challenges. For me, there is no doubt that 2022 was our best performance to date, even given the reduction in profitability year-on-year.”
Lord Charles Allen, THG’s Nonexecutive Chair, said: “The past year has been marked by a number of external challenges – from Covid-19 and its various impacts still lingering in certain territories to rising inflation and the war in Ukraine. And whilst these external factors have impacted consumer confidence and added inflationary pressures to our cost base, the management team have worked hard to mitigate their effects, pivoting to focus on cash generation, strengthening the balance sheet, reducing costs and, in turn, delivering a robust set of financial results.”
*This is not investment advice.
THG share price.
The THG (LON: THG) share price dropped 3.74% to trade at 113.2p, from Tuesday’s closing price of 117.6p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.