THG profit margins to miss forecasts


THG says that 2021 profit margins will be lower than analysts expect, but the UK e-commerce group expects profit margins to recover this year.

The Manchester-based group said on Tuesday that interest rates, taxes, depreciation and pre-amortization margins will be 7.4 to 7.7%, compared to the market expectation of about 7.9%, mainly due to exchange rate fluctuations. rice field.

Margins should improve throughout 2022 as investment in automation and new customer acquisition offset inflationary pressures, which will be weighted towards the second half of the year.

THG shares fell at the end of 2021 as investors questioned the outlook for the Ingenuity sector and criticized the Group’s disclosures. Stocks have lost more than 75% of their value in the last 12 months.

The group responded by appointing an independent chair and pledged to abolish the “special share” structure that empowers co-founder and CEO Matthew Molding to deny hostile takeovers. ..

The Group’s fourth-quarter sales were £ 711m, up 27% from last year, although boosted by the acquisition. Ingenuity, an e-commerce technology business that has been the focus of market interest over the past year, has increased revenue by 41%.

The molding said in a statement on Tuesday that the New Year had begun well and the group was confident.

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