By Emily Hawkins
THG has said it will continue to hike prices at a “slower and lower” rate than inflation, after posting record half-year sales.
The e-commerce retailer said a reduced gross profit margin “primarily reflects the strategy to partially shield consumers from adverse macro-economic conditions and a period of unusually high raw material costs (principally whey).”
Profit margins came on at 42.1 per cent, versus 46.5 per cent in 2021, due to “unusually high” material costs for products such as whey protein.
However, it said it was committed to raising prices “slower and lower than inflation to protect consumers and drive market share gains,” on its own brand products.
Sales hit a record £1.1bn, in the six months ending 30 June 2022, with the company sweeping up market share gains in beauty and nutrition markets.
Matthew Moulding’s retail emporium posted an adjusted EBITDA of £32.3m, with an operating loss of £89.2m that reflected the firm’s “consumer price protection investment strategy.”
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