THG PLC (LSE:THG) has announced it broke even in 2023 as revenue growth returned in the fourth quarter.
Revenue fell by 8.4% to just under £2 billion in the year to December on a continuing constant currency basis, the e-commerce firm reported on Tuesday.
Fourth-quarter continuing revenue climbed by 1.1%, though, driven by THG’s Beauty and Ingenuity brands, bringing a return to growth after sales fell over each of the first three quarters.
A return to growth supported the group to cash flow breakeven over the full year, compared to a £215 million outflow recorded in 2022.
“A combination of automation and significant cost initiatives delivered in 2022, in addition to a receding inflationary environment, each played a key role,” chief executive Matthew Moulding said.
Such automation drove significant cost savings per unit and allowed the company to process more sales over the year, THG said.
Some £125 million of capital expenditure investments were made over the year, meanwhile, leaving the group with around £600 million in cash.
“Whilst the economic background remains uncertain there are some optimistic signs, with consumer cost of living pressures set to ease further in 2024,” Moulding added.
“We are confident that the investments and decisions made throughout the year position the group well to build upon the positive exit momentum.”