The Hut Group (THG) saw its 6-month (H1) revenue go up by 12.3 per cent to £ 1.1 billion though its losses widened.
The adjusted H1 EBITDA was £ 32.3million, but the operating losses increased to £ 89.2million.
The losses distinctly reflected THG’s consumer price protection investment strategy. However, the e-tailer said that it will continue to increase prices at a slower and lower rate than inflation.
Unusually high material costs for some products caused profit margins to fall year-on-year from 46.5 per cent to 42.1 per cent.
The e-tailer said that the strength, resilience and agility of its vertically-integrated business model, coupled with automation, helped it to significantly invest in price protection for consumers presently facing unprecedented cost-of-living challenges.
THG was also offsetting its investment in price by reducing capex in 2023.
Founded in 2004, THG operates more than 100 international websites that take brands direct to consumer through its proprietary e-commerce platform called ingenuity.